Quote:
Originally Posted by mln385
If you have the equity in your house and can afford it then it makes perfect sense to use the equity to buy vs.cash. Your cash can stay in a mutual fund or stocks and will eventually appreciate.
The loan gets paid down every month and the interest is tax deductible which helps your tax liability should you need it. It is a tool just as any other financial desiscion just don't overextend yourself be wise.
|
Just to make the math simple,let's say you are in the 25% tax bracket.
How is paying your bank $1 in interest to save 25 cents in taxes a good financial decision ?
You can quickly go broke saving money like that.
Again...If you can't pay cash,you can't afford it.
