Fat Bastard New Orleans Saints Fan Paradise Member since Mar 2009 15623 posts
re: Another question regarding paying down your mortgage... (Posted on 10/7/12 at 11:58 am to foshizzle)
quote: If you had a 6.5% note instead then it would be much more worth it.
mine was 7.5% when financed back in 1993.
another reason i paid it off waaaaaaay early.
I listed all the other reasons in a previous thread. Different circumstances for different people. lots of Hard times(gets very old indeed), not a huge principal amount left on mortgage, and the high interest rate are great reasons to pay it off soon for peace of mind.
EDIT: but i digress, we have posters here who supposedly know exactly what each person should do and their exact situation and as if they will have no troubles from here on out in life. sigh.
foshizzle LSU Fan Washington DC metro Member since Mar 2008 29501 posts
re: Another question regarding paying down your mortgage... (Posted on 10/7/12 at 1:02 pm to BestBanker)
quote: you do not earn 5% on your money when you pay off a 5% mortgage note. You simply stop paying a note. The only way anyone earns money in this situation is to take the money and deposit in a 5% after-tax account.
No, that's 5% before tax. Your after-tax ROI is pre-tax rate times your tax bracket if you had not claimed the deduction.