Quote:
Originally Posted by dinonz
I just checked on a site, and if I simply increase my monthly home loan payments to that of a 15 year at the same rate - it's paid off in 15 years. Hardly surprising I guess. But then as mentioned elsewhere, I retain the flexibility to go back to the standard payment should things get tight - or perhaps do that after I retire and start living off my investments so I'm drawing less out per month.
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Sounds like your mind is made up. If the extra 90 bps of interest (net of refi costs) are worth the flexibility then so be it.
Also, with respect to the interest deduction, the only portion that is relevant is the portion that gets your itemized deductions over the standard deduction. If, for example, you are itemizing just over the standard deduction, that isn’t much of a benefit vs. the standard deduction that you would get even with zero interest.