Wow AN, you’re really fighting hard to support your case. The rates are now even more favorable to your position, you’ve got liquidity and a long term capital gains rate thrown in (it’s got to be one or the other). Heck, if you used Excel, then your deduction should be $972 or something, not a hundred dollar range (let me guess, it was lower than you thought…)
Some of your points are valid (e.g. savings earning rate likely to go up), but for the here and now, you’d be losing money *and* you’d need considerable income to cover the higher payments (or I forgot, are you liquid or not?!).
As far as the tax benefit going down as you deduct more and more, it brings your effective income down, so the last dollar of deduction won’t usually be at the same rate as the first dollar.
And whoa, I don’t even get what you’re talking about regarding prolonging the tax write-off (and I suspect you don’t either). Finally, compound interest, taking advantage? How do you think a mortgage works? I think it might be taking advantage of you…
