Why is it better to buy a home with a mortgage even if you can buy it off in full?
In: Economics
Depends on your interest rate. If it’s low enough you can beat it with investments. If your interest rate if high, then the less debt the better.
My interest rate is 3.5%, long term stock gains would be taxed at 15% (and no state tax) so to beat it I just need to average better than ~4% each year, which for the S&P 500 is very easy over the long run.
Oh, if you itemize your tax deductions then that also would be a factor.
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