| | | | | | | | | | | | | | . | Assumptions | | | | | Results | | | | | | | | . | 5.25% | Rate of return on outside investments | | | | $224,915 | Return on 15-year mortgage + investments, less interest paid | | | | | | | . | 25% | Tax bracket | | | | $88,032 | Return on 30-year mortgage + investments, less interest paid | | | | | | | . | 3.94% | Rate of return on investments after tax | | | | $136,883 | 15-year mortgage is better by this much | | | | | | | . | Tax savings assume $2500 in deductions in addition to mortgage int. | | | | | | | | | | | | | . | $150,000 | Loan amount | | | | | | | | | | | | . | | | | | | | | | | | | | | . | | Int. Rate | Pmt. | | | | Int. Rate | Pmt. | | | | | | . | 15-year | 5.75% | $15,193 | | | 30-year | 6% | $10,897 | | | | | | . | Year | Balance | Invest. Income | Net Gain | | Year | Interest Paid | Balance | Invest. Income | Tax savings | Net Gain | | | . | | (150,000) | | | | | | (150,000) | | | | | | . | 1 | (143,432) | | (143,432) | | 1 | (9,000) | (148,103) | 4,296 | 1,625 | (142,182) | | | . | 2 | (136,486) | | (136,486) | | 2 | (8,886) | (146,091) | 8,761 | 3,222 | (134,109) | | | . | 3 | (129,141) | | (129,141) | | 3 | (8,765) | (143,960) | 13,401 | 4,788 | (125,770) | | | . | 4 | (121,373) | | (121,373) | | 4 | (8,638) | (141,700) | 18,225 | 6,322 | (117,153) | | | . | 5 | (113,159) | | (113,159) | | 5 | (8,502) | (139,305) | 23,238 | 7,823 | (108,243) | | | . | 6 | (104,473) | | (104,473) | | 6 | (8,358) | (136,765) | 28,449 | 9,287 | (99,029) | | | . | 7 | (95,287) | | (95,287) | | 7 | (8,206) | (134,074) | 33,865 | 10,714 | (89,495) | | | . | 8 | (85,573) | | (85,573) | | 8 | (8,044) | (131,221) | 39,494 | 12,100 | (79,627) | | | . | 9 | (75,300) | | (75,300) | | 9 | (7,873) | (128,197) | 45,345 | 13,443 | (69,409) | | |
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| | | | | | | | | | | | | | . | 10 | (64,437) | | (64,437) | | 10 | (7,692) | (124,992) | 51,426 | 14,741 | (58,824) | | | . | 11 | (52,949) | | (52,949) | | 11 | (7,499) | (121,594) | 57,747 | 15,991 | (47,855) | | | . | 12 | (40,800) | | (40,800) | | 12 | (7,296) | (117,992) | 64,317 | 17,190 | (36,485) | | | . | 13 | (27,953) | | (27,953) | | 13 | (7,080) | (114,174) | 71,145 | 18,335 | (24,694) | | | . | 14 | (14,367) | | (14,367) | | 14 | (6,850) | (110,127) | 78,242 | 19,423 | (12,463) | | | . | 15 | 0 | | 0 | | 15 | (6,608) | (105,838) | 85,619 | 20,449 | 231 | | | . | 16 | | 15,193 | 15,193 | | 16 | (6,350) | (101,291) | 93,286 | 21,412 | 13,407 | | | . | 17 | | 30,984 | 30,984 | | 17 | (6,077) | (96,471) | 101,255 | 22,306 | 27,090 | | | . | 18 | | 47,398 | 47,398 | | 18 | (5,788) | (91,362) | 109,537 | 23,128 | 41,304 | | | . | 19 | | 64,457 | 64,457 | | 19 | (5,482) | (85,946) | 118,146 | 23,874 | 56,074 | | | . | 20 | | 82,188 | 82,188 | | 20 | (5,157) | (80,205) | 127,094 | 24,538 | 71,427 | | | . | 21 | | 100,617 | 100,617 | | 21 | (4,812) | (74,120) | 136,394 | 25,116 | 87,390 | | | . | 22 | | 119,772 | 119,772 | | 22 | (4,447) | (67,670) | 146,060 | 25,603 | 103,993 | | | . | 23 | | 139,682 | 139,682 | | 23 | (4,060) | (60,833) | 156,107 | 25,993 | 121,267 | | | . | 24 | | 160,375 | 160,375 | | 24 | (3,650) | (53,586) | 166,550 | 26,280 | 139,245 | | | . | 25 | | 181,883 | 181,883 | | 25 | (3,215) | (45,904) | 177,404 | 26,459 | 157,959 | | | . | 26 | | 204,237 | 204,237 | | 26 | (2,754) | (37,760) | 188,685 | 26,523 | 177,447 | | | . | 27 | | 227,472 | 227,472 | | 27 | (2,266) | (29,129) | 200,410 | 26,523 | 197,804 | | | . | 28 | | 251,622 | 251,622 | | 28 | (1,748) | (19,979) | 212,597 | 26,523 | 219,140 | | | . | 29 | | 276,723 | 276,723 | | 29 | (1,199) | (10,281) | 225,264 | 26,523 | 241,506 | | |
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