You didn't mention how much interest taking a 15 year loan out will save you vs the 30 year. The amount if interest you save on the loan outweighs the monitary gain from investing. In addition, you also failed to mention that markets are volitile and do not guarentee returns. Your mortgage guarentees you to have the amount of money you took it out for no matter what happens with the market. The only caviet is if your house decreases in value quite a bit.
It's not how much your monthly payments are that's of prime importance, it's how much of that payment is principle and how much is interest. Your tax advantage is only a deduction on the interest portion of the payment. And it's only a deduction, it's not a total write-off. You are servicing that debt for an extra 15 years.
Look at alexremix's response to get some idea of what the numbers look like.
I agree! This guy doesn't seem to understand the concept of paying all that interest with very little tax benefit. He's also assuming someone is in the 25% tax bracket. What if they are in the 15% bracket? The title of this video is a bit misleading as well.
You didn't mention how much interest taking a 15 year loan out will save you vs the 30 year. The amount if interest you save on the loan outweighs the monitary gain from investing. In addition, you also failed to mention that markets are volitile and do not guarentee returns. Your mortgage guarentees you to have the amount of money you took it out for no matter what happens with the market. The only caviet is if your house decreases in value quite a bit.
f00dl3 2 days ago
It's not how much your monthly payments are that's of prime importance, it's how much of that payment is principle and how much is interest. Your tax advantage is only a deduction on the interest portion of the payment. And it's only a deduction, it's not a total write-off. You are servicing that debt for an extra 15 years.
Look at alexremix's response to get some idea of what the numbers look like.
scoobydo 2 months ago
Why is this video entitled Pay off Mortgage Early, when you're recommending that people go for the longer amoritization?
scoobydo 2 months ago
Bullshit!
radishfever 2 months ago
150000 at 6%
30 years:
Total paid $323,754.89
Interest paid = 173,754!! (and you are 30 years older!!!!)
15 years:
Total paid $213,513.47
Interest paid = 63,513 and you have 15 years to enjoy your paid off house..
Simple!!!!! you choose....
alexremix 3 months ago
I agree! This guy doesn't seem to understand the concept of paying all that interest with very little tax benefit. He's also assuming someone is in the 25% tax bracket. What if they are in the 15% bracket? The title of this video is a bit misleading as well.
ricflair123 6 months ago
Meanwhile, you have paid over $350,000 for a $150,000 home at the end of 30 years with very little tax write-off toward the end of the loan.
Basically someone who can't do math.
mommasonga1 11 months ago