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herus_gw

Interesting article re homebuying - Real Estate Journal

herus
17 years ago

Somewhat controversial but much of it makes sense. As we have been mulling over how to pay for our new home (see my other thread), this can be something to think about (and perhaps get confused over).

Particularly this paragraph, near the end of the article:

"But you do have control over two of the biggest home-owning costs: interest and renovations. Both are big money losers. Even with the tax deduction, most of your mortgage interest is still just wasted rent money. So accelerating your principal payment will result in huge savings down the line. Add $300 a month to the payment on a 6.25%, $300,000 loan, and you'll save 10 years of payments and $83,000 of after-tax money -- enough to put a kid through a public university."

Here is a link that might be useful: Nest Egg?

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