05 13

Should i buy a second home or pay off my mortgage

They examined the tax advantages of itemizing deductions, typical mortgage rates and savings interest rates on retirement accounts. After analyzing those variables, the economists concluded, “About 38 percent of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice.”

One of three authors of the report, Clemens Sialm, an assistant professor of finance at the University of Michigan, says his conclusions are actually more dramatic than they appear. He says the number of people who should be saving instead of paying off the mortgage is closer to 60 percent because the economists relied on very conservative investment returns to calculate their findings and didn’t take into account employer matches.

should i buy a second home or pay off my mortgage

Dollar Off Should You Early? Pay Mortgage - The Simple Your

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