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I agree with what she says about how paying down the principle is more important than the tax deduction on the interest. We had a 30-year mortgage for our first five years in this house. Then we refinanced to a 15-year mortgage, and now are actually paying $200 less per month than we were with the original 30-year. I can't tell you how sick I felt seeing that we had barely made a dent in our principle those first five years. If we had gone with a 15-year from the start, we would have been 1/3 of the way through paying off the mortgage. From a psychological standpoint, I would much rather pay down principle than get a bigger tax deduction.
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