Which is a better investment?

Author: jgwest49@aol.com
Guest
Posted: Sun May 23, 2004 9:49 pm

I have a friend who has a mortgage for 49,000 @ 6% interest. would it be wise to pay the mortgage off or to take the 49,000 & put it in a cd @ 4% interest?

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Author: Eugene
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 14 May 2003
Posts: 265
Location: Brooklyn, NY
Posted: Sun May 23, 2004 10:58 pm

The answer will depend on your friend's combined federal and state marginal tax bracket and whether he writes off mortgage interest or not. Most likely, it's better to pay off the mortgage.

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Author: mouse
Guest
Posted: Sun May 23, 2004 11:39 pm
Post subject: Re: mortgage

jgwest49@aol.com wrote:
I have a friend who has a mortgage for 49,000 @ 6% interest. would it be wise to pay the mortgage off or to take the 49,000 & put it in a cd @ 4% interest?

1040-A write off for the mortgage or A tax bite for the CD You can look at it as a benefit of 6% by paying off the mortgage

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