You guys have given more than a couple of things to consider, and I feel a little bad pulling more data w/o going over the advice I recieved on the forum over the weekend. Give me a week and I’ll consider each sinario I’ve already been given.
Here’s the thing. The article caught my interest. I think the #’s are wrong, but I’m not so hot with a mortgage calculator to be totally certain.
Buisnessweek calculates the intrest “earned” over the years if they were to invest it in the stock market, but I didn’t see where they calculated the cost of mortgage, or the “loss” in the first senario. Right off the bat, if it cost me 6% in mortgage intrest, I would HAVE to make 6% in the market to be a wash? Add the tax break for the mortgage intrest, and subtract the same amount I would pay in additional income from the investment and I’m still at a wash, maybe 3/4 of a % in the black? Now my head hurts? That’s a whole lot of stuff to accomplish for a .75% spread? What about the points up front to generate the mortgage and the small fee I pay to vanguard to hold my 401k? No fee’s were calculated?
Who’s good with a mortgage calculator and wants to proof the Article?
