Prepayment vs. Investment -- A Scenario
This form allows you to compare what would happen if you took one of two choices with some extra
cash you have -- prepaying your mortgage each month, or investing it instead. This tries to take
into account your tax situation and assumes you always itemize (even late into your mortgage when
your interest will be lower -- I am assuming you give to charities, and pay state and local taxes too!!)
How much more you have to spend each month:
Current monthly payment (principal & interest only):
Current Annual Loan Interest Rate:
Current Loan Balance:
Loan Interest Deductibility:
Expected Long Term Investment Return (%):
Expected Long Term Tax Rate (%) (Federal+State):
Investment Type: