Thread: Financing.....
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Old 11-16-2015, 10:05 AM   #69
smitty477
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City: Northport
Join Date: Aug 2015
Posts: 2,046
"You are comparing after-tax cost with before tax return."

If you do not remove funds from a tax deferred account it will continue to receive whatever interest it collect tax free.


"Also, home mortgage interest is an AMT item, so, depending on your AGI, you aren't really saving the marginal tax rate."


But if you do itemize (like us) you will realize the interest deduction in the year that it is paid and that can be in excess of 1/3rd the payment in early years - we are very lucky to be in NY where the rates are near the highest.


The only valuable point is that its is just math and loans can mean different things with different people.
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