Jan

2

Pay off mortgage VS Tax Benefits of a mortage?

Filed Under United States 

gcason asked:


Does it make more sense overall to pay off your mortgage and invest the amount you would spend, or keep a mortgage for the tax benefits?

Website content

Comments

5 Responses to “Pay off mortgage VS Tax Benefits of a mortage?”

  1. lily on January 2nd, 2009 7:39 pm

    Caffeinated Content for WordPress

    pay off the mortgage,and invest the money

  2. lowa71184 on January 4th, 2009 2:01 pm

    Caffeinated Content for WordPress

    You can probably do a cost analysis… it really depends on the investment, the interest rate on your mortgage, and what the tax return is on identical situations. Generally, I think it tends to be better off to keep the mortgage, but if you plan to invest in riskier, higher-paying investments, it could be worth it.

  3. justwondering on January 6th, 2009 1:26 pm

    Create a video blog

    For every dollar you pay to someone else for interest your tax advantage is what ever tax rate you are in. If you are 28% bracket and you have paid $12000. in interest this year you get a $3360. tax break. Woopee! You just parted with $8640 to make someone else rich.
    Pay off the house - the cash flow that you paid your mortgage with can now be invested monthly - and you have taken a step to secure your future.

  4. besthusbandever on January 8th, 2009 3:07 am

    Caffeinated Content

    depends on what your mortgage interest rate is…. if it is low saw 5,6, or 7% best to not pay it off and invest the money into a good mutual fund…because on average the stock market will produce a gain of 10%

    if your interest rate is higher than 10% pay it off, and then start to invest the money each month that you were paying on your mortgage into a good mutual fund.

  5. tpbthigb on January 8th, 2009 7:33 pm

    Caffeinated Content

    Paying off the mortgage is much more beneficial to you. The money you invest will far exceed the tax benefits you get for a mortgage. Just remember with any investment there is risk, there are also investments that minimize the risk and although they grow slower the key thing to remember is that the investment is growing instead of costing you money as interest on a mortgage will.

Leave a Reply