Re: Help me settle this 20 yr fixed vs 30 yr fixed mortgage debate
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But therein lies the trick right? You must be paying down the principal the entire time anyway to see the advantage. If the money is spent investing, then the loan continues to amoritize at the 30 year rate and you will still owe the $81k principle at the end of year 20. Your investment will have to do about 9% ROI each year to beat the 20 year after you figure in the capital gains tax.
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Yeah, most people do it for the versatility IIRC. Though I don't talk to a ton of people about their mortgage plans.
I wanna say that off the cuff you should do things in vaguely this order
Tax defer or exempt > Retirement > Prepay Mortgage
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