主题：【讨论】说点儿俗事 --- 银行利息和房屋贷款的问题 -- Highway

If you only look at the rates, you will make

money as long as the bank rate is higher than

the mortgage rate:

bank rate * (1 - marginal tax rate) = after tax return

mortgate rate * (1- marginal tax rate) = after tax cost

However, there are two things to consider:

1. The additional interest may raise your adjusted gross income beyond

a certain level. Some credits and deductions are phased out according

to your AGI instead of taxable income.

2. If your current itemized deduction is too high, you cannot deduct the full

amount. Reducing mortgate interest means reducing wasted itemization.

Just my 2 cents.