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Author: cheapbastard Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121598  
Subject: mortgage buy down Date: 1/2/1999 5:28 PM
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Hello,

I have enough cash to pay off my mortgage. Am I better off paying off the mortgage (6.75%, 15 year fixed) or puting the money in an investment vehicle. I realize that the current method I am using (approximately 4% return in a money market account) is a loosing proposition even with the modest income and tax benefits (at 39.6%).

When I do the math it seems that over the 15 years if I put the money into an S&P index and get back even 10% and the return is taxed as long term capital gains at 20% I can come out significantly ahead. Unfortunately this approach flies in the face of my general inclination which is to pay off all of my debts if possible.

Mike
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