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<blockquote data-quote="Up In Smoke" data-source="post: 5643829" data-attributes="member: 79702"><p>It's simple math. A 10 year mortgage for 120K will cost $1160.00 per month for P&I. That mortgage will cost you 19K in interest over the course of the 10 year term. During that same term your 120K in savings at a 5% yearly return nets you 98K in interest. That's a 78K net return on investment over 10 years or 8K per year or $666.00 per month on average. If you pay off the 120K and invest the payment of $1160.00 per month over the course of 10 years at 5% interest, your total interest earned will be 43K. By holding onto his current mortgage and letting his investment mature he will see a net increase in savings of 35K or $291.00 per month.</p></blockquote><p></p>
[QUOTE="Up In Smoke, post: 5643829, member: 79702"] It's simple math. A 10 year mortgage for 120K will cost $1160.00 per month for P&I. That mortgage will cost you 19K in interest over the course of the 10 year term. During that same term your 120K in savings at a 5% yearly return nets you 98K in interest. That's a 78K net return on investment over 10 years or 8K per year or $666.00 per month on average. If you pay off the 120K and invest the payment of $1160.00 per month over the course of 10 years at 5% interest, your total interest earned will be 43K. By holding onto his current mortgage and letting his investment mature he will see a net increase in savings of 35K or $291.00 per month. [/QUOTE]
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