> OK, so lets say this is a bad idea and you should instead > not have any savings in that case, and make all of your > savings into payments on your mortgage

> OK, so lets say this is a bad idea and you should instead > not have any savings in that case, and make all of your > savings into payments on your mortgage interest. You're > saying we could model that by assuming you are making > periodic risk-free 5% (or whatever) investment instead. Exactly. > I get what you're saying but a tax deduction can never > completely offset the interest payment right? Agreed, but I just meant that the more mortgage interest you pay the more you save on taxes, not that the interest is totally offset or anything.