I was thinking of making extra payments on my mortgage now that all my high interest rate student loans are gone, but I changed my mind when I saw the tax savings this year and considered what my actual interest rate is on that loan.
I have a 296k mortgage on a 600k house and its at 4% 30 yr fixed, since I'm in a marginal tax bracket of 33% my actual interest rate is around 2.5% after tax savings, according to a couple of calculators I found online
I have 103k in student loans at 2.6 fixed%
I now feel confident that there is no reason to pay these down quickly and I am instead planning on saving aggressively and building up a large taxable account (of course after filling up tax advantaged accounts).
For me, seeing that my retirement and brokerage account balances are way bigger than my debt is what's going to finally feel like I've accomplished something. My current net worth is largely dependent on the equity in my home.
I have a 296k mortgage on a 600k house and its at 4% 30 yr fixed, since I'm in a marginal tax bracket of 33% my actual interest rate is around 2.5% after tax savings, according to a couple of calculators I found online
I have 103k in student loans at 2.6 fixed%
I now feel confident that there is no reason to pay these down quickly and I am instead planning on saving aggressively and building up a large taxable account (of course after filling up tax advantaged accounts).
For me, seeing that my retirement and brokerage account balances are way bigger than my debt is what's going to finally feel like I've accomplished something. My current net worth is largely dependent on the equity in my home.
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