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Home Lending News

Extra Cash – Invest or Pay Down Mortgage?

By Julie Post

” Have extra cash? Should you invest it or use it to pay down your mortgage? When you pre-pay part of your mortgage, you end up paying less in interest. But as a result you also lose part of your mortgage-interest tax break.

Your true savings, then can be expressed as the difference between your mortgage rate and the rate at which you take your deduction (a function of your total marginal tax rate). If that net percentage figure is less than the amount you could make investing the cash, you’re better off investing it.”

A friendly message from

David McDonald

Century 21

Source:: http://jpost.lenderama.com/2015/02/16/extra-cash-invest-or-pay-down-mortgage/

 

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Our Home Loan Team
Julie Post, President, MTP Mortgage » NMLS #145832
Julie Post, President, MTP Mortgage » NMLS #145832

Julie post has extensive marketing, management and accounting experience and has been in the mortgage lending industry for the last 13 years.

Julie Post is the co-founder, President and Senior Mortgage Loan Originator of MTP Mortgage. Her decision to co-found MTP Mortgage was based upon a desire to bring low fees, extremely competitive rates, excellent compliance, fast turn times and many tools available to every single client.

Julie Post can originate any type of loan – including FHA, VA, Conventional, Jumbo, USDA, Asset Loans, Asset Depletion Loans, Foreign National Loans and much more. She works her clients’ hours and is available in the evenings and on the weekends.