Improving your IRA for home owning

Lenders always recommend that people look for homes that cost no more than three to five times their annual income which means your annual household income is approximately $62,000 or less. While this can be difficult to realize on the purchase of a home, if you have a standard retirement account, you can always move your money into that account or liquidate a portion of it. But even in cases where you live in a city that is at or below the national average, you can use your IRA to get a smaller mortgage, if you are just in the process of getting a mortgage, you can also get information on how to get a mortgage in different sites online. This usually means a lower down payment, and you’ll probably be able to find a home that is more affordable. If you can’t get a mortgage, look to have your property appraised to see if you’re financially able to make the buy. This also can help you determine whether you can afford to move into your home. If you have a regular IRA, your payments can continue indefinitely, even if you have to stop working to take care of aging parents or a sick spouse. However, you can make some changes to your IRA to save on the costs of homeownership. If you’ve bought an existing home, you can change the beneficiary of your IRA to one of your children, if you so choose. However, your IRA custodian will have to readjust your account so that you are eligible for a new mortgage. If you use a Roth IRA, you can always take out a regular mortgage or refinance your existing mortgage to reduce your monthly payments. Using a Roth IRA may mean that you pay more interest on your mortgage than if you didn’t use an IRA. Also, the deduction you may be able to take on your tax return for paying property taxes and property insurance (deductible up to $2,500 for the owner) may decrease if you use a Roth. You should always get independent financial advice to help you decide how to save for your future. We invite you to consider taking 30-day Money Pulse Reader Bonus and get this book for free. This new book from Financial Finesse teaches readers how to make the most out of your savings. You’ll learn: How to get out of debt

How to keep your savings ahead of inflation

What to do with that hard-earned money you just saved

Why the Wall Streeters want you to pay for what you bought with your hard-earned dollars

How to put it all to good use by saving for a dream vacation

Why every penny countsand you don’t have to spend more than you earn

What to do with those leftover pension funds and tax-deductible health savings accounts If you need a primer for how to figure out how much you should put in your IRA, check out this introductory video from T. Rowe Price. The following table gives you an idea of how much you can contribute to an IRA for 2017. IRA Contribution Limits IRA Contribution Limits 2017 $5,500 2017 $5,500 2016 $5,500 2016 $5,500 2015 $5,500 2015 $5,500 2014 $5,500 2014 $5,500 2013 $5,500 2013 $5,500 2012 $5,500 2012 $5,500 2011 $5,500 2011 $5,500 2010 $5,500 2010 $

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