Make a Balance Sheet and Income Statement, then calculate Tax Overhead

Household income $165,000

John & Mary bought their first home 1 years ago, paid $500,000 put down 10% and financed the balance in a 30 year fixed mortgage at 3.75%. Their current balance is $440,000 because they were making extra principal payments, but now wonder if they should continue doing this.

John & Mary currently have a joint checking account with $5,000 on a given day and a joint savings with $45,000 balance on a given day. The market value of their jointly owned home is now $550,000.

John has $24,000 in his 401k retirement plan at work. Mary has $22,000 in her 403b retirement plan at work.

Mary owns & drives a 2018 Buick Regal (valued at $18,000) and John owns a drives a 2018 Chevrolet Malibu (valued at $16,000). They do have $6,000 in remaining auto loans with a 3% interest rate. Together they have only $7,500 remaining balance on their student loans at a 5% interest rate. They pay off their credit cards in full every month.

Their regular living expenses include: $7,200 in yearly real estate taxes, $800 yearly water & sewer bill, $350 per month in groceries, $125 monthly cable & internet, $75 monthly electric bill, $3,600 yearly heating bill, car loan payment is $300/month, student loan payment is $350/month, $150 per month car insurance, $125/month homeowners insurance, $200 monthly gas for their cars, $500 monthly fun money.

There is a 5% state income tax; 7.65% combined social security & medicare tax; 0.75% DFML tax and a 20% federal income tax.