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The last big push

April 14th, 2015 at 05:07 pm

Tomorrow is a big day.

We close on the duplex refinance, saving about $400 per month on our mortgage payment.

As part of that, we pay off the second mortgage (promissory note) that we borrowed from the seller. To pay off that $26,500 debt ($26,559.35 since we're paying interest for the first half of April), we had to borrow $15,000 from a line of credit.

The promissory note payment ($119) will be gone but will be replaced temporarily by a $265 monthly payment to the line of credit.

When the money from my dad's WV land deal comes through (hopefully in mid-June), that line of credit will be the first thing I pay off. So hopefully we'll only have that $265 payment for two months.

Also tomorrow, I need to pay our 2014 tax bills:
CJ/NT state taxes $240
AS federal taxes $3,099
AS owe state taxes $435
This is mainly covered by the CJ/NT federal refund, which I already received.

Then I have to pay AS's estimated quarterly federal and state taxes. I could pay the minimum advised by my tax guy, but I decided to go ahead and pay what I thought she actually owes for the quarter:
Federal $2,724.48
State $1,167.63

In order to do that, I need to take out a $1400 loan from my reserve line. I know, it's foolish to do that when I could simply make smaller payments for federal and state taxes. But it's worth it to me to feel like everything is current and paid up. I'll be able to pay off the $1400 on April 30 (some of it earlier, if AS gets any more freelance checks between now and then). So it'll just be a few bucks of interest.

So in total, the money out tomorrow will be ... drum roll ... $34,225.46.

I should probably feel freaked out! We'll be at an all-time low in actual cash, since the UK account is also cleared out for the UK renovations. But starting April 30 (or whenever AS's next freelance check comes through), we begin to rebuild. AS is expecting about $6K to come in over the next month or so. And we're expecting that big check from my dad's deal in June. So I'm actually feeling great!

I think a large part of it is a relief that I'll finally sever the relationship with the duplex seller. I'm glad I didn't know what that was going to be like when I agreed to it, and I'm glad it's almost over!

Posted in Uncategorized | 9 Comments »

9 Responses to “The last big push”

  1. ThriftoRama Says:
    April 14th, 2015 at 05:19 pm 1429031973
    1429031973

    Oh my gosh. All that math and juggling just made my head spin. I hope all of the transactions go smoothly and according to plan just so I don't have an heart attack reading your next few posts!

  2. ceejay74 Says:
    April 14th, 2015 at 05:26 pm 1429032386
    1429032386

    I know! I'm confident, but at the same time, it's a lot to juggle. I'll be checking my bank account first thing in the morning to make sure our paychecks hit and to move that reserve line money over, then heading to the bank before work to do the wire for the promissory payoff, then doing the IRS and MN State Revenue payments via their websites once I get to work. I'll check in here as soon as everything's done, hopefully with good news that it all went off without a hitch! Smile

  3. snafu Says:
    April 14th, 2015 at 06:55 pm 1429037744
    1429037744

    I too feel confident since you've had so much experience manipulating income to balance expenses, particularly those that were unexpected like electrical issue at condo. I hope it's ok to suggest making a smaller IRS quarterly [accountant recommended] payment until the WV deal sum actually deposits. You can make larger payments for June, Sept, Dec] without penalty.

  4. ceejay74 Says:
    April 14th, 2015 at 07:33 pm 1429039996
    1429039996

    Thanks snafu. I'll think about it some more. I definitely know that's the smart thing to do; but my heart wants to do it the other way. I'll try to talk my heart out of it. Wink

  5. FrugalTexan75 Says:
    April 15th, 2015 at 12:05 am 1429056328
    1429056328

    Yay for being rid of the duplex seller!

  6. creditcardfree Says:
    April 15th, 2015 at 12:16 am 1429056982
    1429056982

    That will be very nice to be done with that seller. Smile

  7. Kiki Says:
    April 15th, 2015 at 03:48 am 1429069729
    1429069729

    Fingers crossed it all go according to plan tomorrow!

  8. Looking Forward Says:
    April 16th, 2015 at 03:07 am 1429153645
    1429153645

    Saving $400/mo is awesome! YAY! Big Grin

  9. LuckyRobin Says:
    April 16th, 2015 at 10:53 pm 1429224839
    1429224839

    And I thought I was juggling when we were going through our house sale. I am glad I didn't have as much to go through as you are, because I was stressed enough as it was.

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