You will still have to pay taxes when you take distributions in retirement. It may be at a lower tax rate, but the taxes have to be paid. You would only lose the $5445 (33% Tax bracket) tax free advantage investment monies. I don’t think that is totally apples to apples. To run the actual #’s we would have to see how well the $5445 performs. To prove this theory we would also have to take the money saved on PMI and invest it in an after tax investment. BTW this is way over my head.