I would explore paying down the mortgage, for this reason: if you are in the 28% bracket, you could get an effective pretax return as high as 10% by doing so. This assumes you are married filing jointly, and have no significant itemized deductions other than housing related items. Regardless, you have a minimum 7.25% guaranteed pretax return.Hmmm., then when you do sell the old homestead you pay out 6% commission to the Realtor. Your example has both pros and cons.Depends on what alternative investment returns are available and the current mortgage interest rate as well.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra