A Tale of Two Mortgages: A Different Approach to Owning Your Home

As loan principal is paid $487,800 Mortgage Interest Tax Deduction interest creates a tax down less loan interest is S4чо,803 charged. Mortgage loan deduction. Mortgage interest a percentage of the outstanding is Amon Mortgag Mortgage Loan Principal charged to the consumer annually. $1355.50 per month $46,997 $300,000 at 3.58% APR $0 N/A ($). Mortgage Loan Principal is the amount borrowed from and repaid to the bank for the purchase of the house. Mortgage Loan Total of 360 Payments Principal Repayment Total Tax Deduction (Assuming 25% Federal) Payments Net of Taxes 7% Apnual Rate of Return An Investment Account is deposited into each month, in lieu of repaying Mortgage Loan Principal to the bank. Mortgage Remaining Investment Account $355.50 Investment Account Value per month after paying off Mortgage $487,800 This is a mortgage loan 30 Year Interest Only Mortgage $397,800 Interest Only that pays the bank only interest on the Principal borrowed for the purchase of the house. $1000.00 per month Mortgage Payment $300,000 at 4.00% APR The Mortgage Interest Tax Deduction remains level throughout the life of Tax Deduction the Loan creating a non- decreasing tax deduction. $132,142 Mortgage Interest $90,000 $0 seanseidell.wordpress.com Sean Seidell © 2013 A Tale of Two Mortgages: A Different Approach to Owning Your Home