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Originally Posted by Supertacks
I have a reasonable mortgage rate at 5.35. Over the life of the note I will be paying 98K in interest. My early estimates put me at about 45K in penalties and income tax on the early disbursement.
The easy math suggests that over the life of the note, the difference of 98K minus the 45K in penalties and taxs in 08 still provides me a net gain of 53k.
It seems to easy to me. What am I missing?
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You are missing the value of the income the retirement account would make in the time you are paying your mortgage - I am guessing that if you calculated that - it would exceed the 53k.
Make one extra payment to principle a year, that will save you thousands.
__________________
Some guys they just give up living
And start dying little by little, piece by piece,
Some guys come home from work and wash up,
And go racin' in the street.
Bruce Springsteen - Racing In The Street - 1978
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