ER, I think the 2% yearly MR increase is automatic. They essentially computed the bond payoff with the 2% yearly increase in mind. Just checked my street and it looks like the 2% MR increase is right on schedule.
This is another reason why the MR payoff made sense to me. When I paid it off last year, the yearly obligation was $5300. But after 10 years, that yearly obligation would be $6400, and after 15 years, that yearly obligation would then be $7000.
Meanwhile, with the AMT, the MR essentially feels like double taxation. I’m using post tax dollar to pay more tax, just doesn’t feel right.
