Tag: net after tax cost of borrowing
Prepaying mortgage versus saving
Most people believe they should rid themselves of their mortgage before they save for other accumulation goals. However, as Todd Ballenger pointed out in his book “Borrow Smart Retire Rich” this decision comes with hidden costs. Here is an example, let’s assume a homeowner has $1,000 each month to either save or use to pay [...]
Posted: October 1st, 2008 under General Mortgage Info., Personal Finance.
Tags: financial arbitrage, net after tax cost of borrowing, prepay mortgage, savings
Comments: 1
Net after tax cost of borrowing
In Todd Ballenger’s book “Borrow Smart Retire Rich” he trademarks the term ‘EPR’ which stands for Effective Percentage Rate. This concept it important in making decisions regarding how much a homeowner should borrow. Here is a simple explanation: 1) First, it’s important to understand that most homeowner’s are able to deduct the interest that they [...]
Posted: October 1st, 2008 under General Mortgage Info., Home Purchase, Personal Finance, Taxes.
Tags: EPR, net after tax cost of borrowing, tax deduction
Comments: 4