Quote:
Originally Posted by Caoineag
Its really an interest rate game. I am paying mine on the 10 year plan and won't pay them off early because it would be better for me to pay off any mortgage I get thanks to the interest rate, even with me getting a 15 year mortgage.
And to me, debt is debt. Just because you can deduct the interest on a debt doesn't mean its good debt (I have heard people claim mortgages are good debt as well because of this.) So I am going to pay the most expensive debt first and work down from there.
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I agree keeping debt to get a tax deduction is bad.
But there is more to being "good debt" than the deduction. I think of a house as good debt because I bought my house for 352k and borrowed most of it. When I sell the house I expect to get 750k for it. So borrowing 280k to make 470k makes sense to me (that makes the 280k good debt).
It might cost me 500k total (between P&I payments) to make the 750k, but I still came out ahead because the house is an appreciating asset.