saysjoecole

Keep the mortgage for the tax deduction or pay it off? 

Let’s assume that you make $60,000 a year and you have a $10,000 tax write-off from your mortgage interest home loan, that means you pay taxes on $50,000. If you don’t have a mortgage, you would have to pay taxes on your full income of $60,000. Since you’re in a 25% tax bracket. Twenty-five percent of $10,000 is $2,500. Your tax bill just went up by $2,500 because you don’t have a mortgage. However, you are no longer  wasting $10,000 on mortgage interest! Your tax bill went up by $2,500, but you saved $10,000. Which means you have a net savings of $7,500. That is, a savings of $7,500 every year. Shown on the chart pasted below, you can easily convert this savings of $7,500 into almost a million dollars by investing it in an index fund. Again, details in the original post. 

Link to original post: https://saysjoeygraziano.com/2017/08/31/kill-your-mortgage-tax-deduction-and-become-rich/