3 ms·

I think anyone will concede that depending on the location and interest rates, the math can be close. But 4% on a CD and 6% interest only loan? That is not real

• blibble 13y ago
  wouldn't you pay tax on interest for that 'CD' thingy too? also it's not a fair comparison: yes with a mortgage at the beginning your payments are 99% interest, but in the last 5 years they're almost entirely principle, so you get to keep that money. if you're still renting in 25 years 100% of that money is still going to the landlord, and your rent has likely gone up by a factor of 5 too. ALSO over long periods of time real estate nearly always increases in value (more than inflation), so that's another thing to consider.
  • matwood 13y ago
    And early on while you are paying lots of loan interest it can lower your taxes significantly.