Ask Madison: Reader Mail Volume 4

It’s been awhile since I answered reader mail, opting instead to send personal emails when I can. However, some of the emails would probably benefit others. While I was on vacation, I skimmed through some of the recent emails; here are a couple reader questions that might be of interest to readers:

Very interested in your credit card arbitrage. Would like to know how I could use this for “refinancing” a current rental property I have. The property has a remaining mortgage of $22,500 at 7.5%. I purchased it about 8 years ago. If I am able to use a credit card transfer offer for the full amount, am I able to use the interest charged, as mortgage interest for the rental, considering I will no longer receive a 1099? – Kim

If you are using interest paid for a rental, and it doesn’t come from a bank in the form of a traditional mortgage, there is a second line on the Schedule E (line 13) where you can report “other interest” for mortgage interest that is not from a financial institution or did not send a 1098. That’s where I report the cost when financing properties with credit cards. Just make sure to keep good documentation of the money trail!

On #7, how much is the modification fee? What kind of mortgage do you have in order to get 3.375%? – Chris [Referring to #7: Modify your mortgage in 16 Ways to Lower Your Housing Costs]

I’ve done two modifications, once I paid 0.5% of the outstanding balance, the most recent time I paid 1.0%. I have the 5/5 Penfed ARM. Also, I modified on a day when the buydown for the 3.375 rate was .125 points; today, the rate is 3.25% with 0 points!

Now, onto the personal finance articles of the week…

Retirement

• Required Minimum Distribution Rules For IRA and 401k’s
• Early Retirement Extreme: Book Review
• 401k Investment Alternatives

Investing

• ETFs Have Their Drawbacks, ETF Negative Aspects, Why Avoid ETFs?
• 3 Easy Ways to Invest with Vanguard
• Zecco Wall Street Facebook App Review
• Technical Risk Ratios

By the Numbers

• 10 Keys to Excellence: How to Be Outstanding
• 20 Ways To Make Today Unforgettable
• 10 Essential and Inexpensive Organizing Tools
• 5 Ways to Raise Money-Smart Kids

And More!

• Bitcoins: The Future of Money or End of the World?
• Why Are You In Debt? Problem Behaviors That Suck Your Money Dry
• Crop PDF Files for Amazon Kindle

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