Originally Posted by
Trip7
For me, liquidity is a better peace of mind. If all else that you stated above is equal, and the extra mortgage payments were placed in a savings account, the liquidity and the tax savings from the mortgage interest deduction puts you into a far more superior position in a downturn vs years of paying down the mortgage and reducing your liquidity.
Furthermore, investing that money on a strict value based approach likely leads to a far FAR better financial position in a downturn.
I will agree that for many who see investing as Yolo'ing into Nvidia stock(or Calls😂
paying down the mortgage is better
Not sure why you only mentioned 1/2 of the tax equation when comparing mortgage to savings account.
If you had, say, a 4% mortgage and a savings account that pays 4% interest, the tax implications essentially cancel either other out. Sure you deduct the mortgage interest from your taxes, but then you add the 1099-INT tax on the savings interest right back in.
Even then, you still have to get "over the hump" of the standard deduction to make a plan based on itemizing your mortgage interest worthwhile.