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Subject:  Re: Ordinary People...Extraordinary Wealth Date:  3/2/2001  12:42 PM
Author:  JLC Number:  36 of 220

The previous post makes several good points about stock and house appreciation. And since people are throwing numbers around, I'll give a few to back up my choice for paying off the mortgage vs. buying stocks.

My house @90k when bought, at the end of 30 year mortgage would've paid a total of @270k. If house appreciation kept up with inflation it's value would've been @290k. Thus a net gain of 20k. Throw in interest payment deductions, etc., would add another 80-90k for my tax bracket, so maybe a gain of 100k.

Now take my mortgage payment of @$900/month for the next 20 years, even if I got a measley passbook/CD return of 5%, I'd have around 330k, take away capital gains and I'm still around 280k.

So to me, in my way of thinking, I'm 180k ahead, plus the big advantage of owning my home outright.

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