Reply to I know why Millenials can't afford houses and pay off their student loans..

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]^ Different folks have different debt tolerances. We paid off our home in 3 years. Mathematically, would it have been more profitable to have stretched it out to 30 and invested the difference? Probably. But we wanted the mortgage gone, and we've got no regrets. [/quote]

But doesn't this impact your tax rate?  Doesn't it help to have the mortgage interest tax deduction? [/quote]

I wish I had $1 for every time I've pointed out that you pay $1 for 30 cents in mortgage tax deduction.

Stupid.[/quote]

+1.  So financially illiterate.  An interest deduction is great when you have no choice but to incur the expense of paying interest, like when you take a mortgage to buy a house.  Interest is still an expense you pay, real $ going out to the bank.  The deduction helps soften the blow, but ideally you don't have the expense at all.  [/quote]

You have a fixed low rate loan, at like 4%, and you get 30% back as tax deduction.  So basically if you can find a way to use that cash you have to earn something like 2.8%, you have made up the cost of the interest.  A 10 year T-Bill will do that for you in fact, but you could even just do a 5-year and then mix it up with some higher yielding corporate debt or stocks.

The fixed low interest rate AND tax deduction, giving that away, that is financially illiterate, sorry.[/quote]

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