ENT DocParticipantStatus: PhysicianPosts: 3500Joined: 01/14/2017
For those who care I did a 15 vs 30 comparison a while ago. The interest deduction scenario assumes that all interest is deductible and that you’re able to save on the marginal tax rate (you’re already over the $24,000 standard deduction). So if you’re in between your present value will fall somewhere in between the two results. Should just need to input your 15 and 30 year rates, loan amount, and marginal investment return. Enjoy.
Attachments:You must be logged in to view attached files.LordosisParticipantStatus: PhysicianPosts: 1807Joined: 02/11/2019
We always know who to turn to for a great Excel sheet!
“Never let your sense of morals prevent you from doing what is right.”April 3, 2019 at 7:28 am MST #203461ZaphodParticipantStatus: Physician, Small Business OwnerPosts: 6177Joined: 01/12/2016
Does this logic extend to student loan debt or others? The conventional wisdom seems to be to drop student loans ASAP, but you could refinance to 15 years instead of 5 and invest the difference.Click to expand…
Mortgages due to their usually high value (though student loans compete for us here), long terms available which leads to imputed rent income, tax benefits and generally the lowest rates you can get amongst loans gets special billing. You will also always need a place to live so there is a constant cost to housing regardless of whether or not you have paid it off, not the case with the others generally.
Also agree that if extended everywhere in life you have a very high fixed costs burden and limit your liquidity for emergencies, savings, etc…April 3, 2019 at 3:58 pm MST #203640