No. of Recommendations: 0
TheBadger said: . . . I think (but would love to be proven wrong) that mortgages are virtually always cheaper than the broker call rate.

One exception might be someone with an inexpensive home and no/low state income tax, and other itemized deductions. Most of their interest deduction would go towards eating up their standard deduction.

An example would be DINK professionals in Texas who are seriously LBTM. They might be better off taking the standard deduction and paying an extra 100 or 200 basis points for the loan.

On another point, I am a little confused when you said that couldn't see any reason to recatagorize LT Gains in order to match Margin Interest expense. If all your positions had gone long term, wouldn't you be better off to go ahead and take enough gains to offset your MI rather than roll the unused MI forward? I'm thinking, of course, of a situation where you are living off investments and the prospect of new investment is problematic.

Baanista - Who appreciated TheBadger pointing out that you can take short term gains and repurchasing the asset as a way to use up your MI deduction.
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