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| trixiezzz |
 Posted: Fri Feb 11, 2005 12:49 pm Post subject: Is it better to pay off my house or take the deduction? |
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Investing Manager
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| I'd like to work toward paying off my mortgage but I'd lose the tax deduction. Which is better long term? |
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| eagertolearn |
| Posted: Wed Feb 23, 2005 12:11 pm Post subject: |
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Investing Sr. Associate
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| Personally, I would pay it off - simply because I don't like "owing" anyone anything. |
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| moneytree |
| Posted: Wed Feb 23, 2005 1:29 pm Post subject: |
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Investing Sr. Associate
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| Wouldn't it depend on what tax bracket you are in? |
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| niche4u |
| Posted: Mon Mar 07, 2005 5:58 am Post subject: |
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New Poster
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| i will probably pay it off. |
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| paula0000 |
| Posted: Mon Mar 07, 2005 4:40 pm Post subject: |
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Investing Manager
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| I had a similar question. I have opted to pay down my mortgage. |
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| jasonr114 |
| Posted: Sat Mar 12, 2005 1:52 pm Post subject: |
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Investing Associate
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You should pay down the mortgage. The tax deduction is based on the mortgage interest that you pay.
The money that you are saving is equal to your tax bracket multiplied by the dollar amount that you paid in mortage interest.
Depending on your situation, this may or may not prevent you from itemizing your deductions... if you switch over to the standard deduction you could spend a couple hundred more in taxes.
Is that couple hundred less that than the few thousand you are spending in mortgage interest?
Yes. |
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