1. Don’t assume you will be in the 45% bracket forever. Unless you have scads of passive ordinary income for life. Few people do. At retirement you will probably have a lot of 15-20% incomed taxed as dividends.
2. If you have piles of cash in the bank making .5% and are saving more every month, some repayment makes sense.
3. It is quite possible if not likely you will never have a partly tax deductible 30 year loan at 3.375 offered to you ever again. That cash that could now be used to reduce the 3.375 balance you might wish you had later to reduce the 4.6% rate on an investment condo. Opportunities can appear if you have the cash to take them.
4. It is a relatively small decision to pay down the balance by about 25% so that what remains is tax deductible in theory, so if there is an AMT fix, happened a lot in the past, you then get it back.
5. The SALT provision in the tax bill could be dead as soon 2021. Why wouldn’t the dems repeal the tax cuts for the super rich to give back to blue state semi-rich? A lot of the newly elected Dem congressmen will owe their election to SALT.
