Wednesday, April 13, 2011

No, It Still Makes Sense To Make House Payments

I mentioned a couple of days ago that I was not getting any tax advantage anymore from my house mortgage interest, because I pay so little interest, and it might be time to pay it off.  But it turns out that the amount of interest that I pay is so little that I only have to earn about 3% interest net taxes on my savings to make the mortgage a wash.  That is not at all difficult to do.  Even my PayPal account pays 3% interest, and tying the money up in a 30 year Treasury will give more then 4.5% at the moment--so it comes out, after taxes, at better than 3%.

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