- posted 10 years ago
I know this topic comes up every so often,
and I've read thru the previous threads,
but as I was filling out TurboTax
I could easily play the game with the payoff.
Here's the set of basic numbers from TT
real estate taxes - $7,200
mortgage interest - $4,300
the overall itemized deduction is - $15,260
and our current refund happens to be - $3,953
if we had paid off the mortgage,
the interest of $4,300 would not exist
and the itemized deduction is now - $10,960
which is below the standard deduction - $11,400
adding the built-in real estate taxes of $1,000,
and the standard deduction total is - $12,400
with the refund now reset to - $3,097
SO - the difference is $856 - is it worth it - ?
I guess the larger question, is the return
on the total yearly P&I payment - $9,200 ?
Is that $856 / $9,200 = 9.3% ?