Home › Forums › Financial Markets/Economics › paying off mortgage. new tax law. › I do not see how a 5% return
I do not see how a 5% return on 370,000 would beat paying off the mortgage.
5% on 370,000 is 18,500 a year. Minus 45% taxes leaves me with about 10,000 extra in the bank every year after taxes.
Paying off the mortgage leaves me with about 25,000 extra in the bank every year (2,100 p&i x 12) after taxes.
What am I missing here? Am I being obtuse to something obvious? How in the hell is 5% return anywhere close to matching the return on paying this off?
