Quote:
Originally Posted by mrkajz44
Just becuase the interest is tax deductible does not mean it makes more sense to pay more of it over the life of the mortgage. You will still pay more interest, even though the tax effect reduces the impact.
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If you don't want to pay more interest then just put more money towards the capital. If you're not the kind of person who can budget that yourself, and you need the forced payment scheme of a lower mortgage, then you shouldn't be buying an investment property to begin with.
You've got to remember that for every dollar you spen on interest, since it is a tax right off, only becomes the equivalent of 60 cents or so. Also, it's better to have lower forced payments in the event you are unable to collect rent.