I think the book I am speaking of was written in the 80's and I think it was authored by Larry Burkett. Nonetheless, the author promotes the concept of getting out debt, and shows you how to calculate the money that is saved when prepaying on a mortgage. The savings are huge when a mortgage is young. Bankers tend to be wealthy because they realize and take advantage of the way interest works. However, I reviewed the site posted above. I love tax deductions as much as anyone else. But I believe that interest that is deductible only reduces my taxable income by the deductible amount. For example purposes, assume I paid 6,000.00 a year in interest that qualfied as a tax deduction, and assume that I am in a 10% tax bracket, I would save $600.00 in taxes, so I would still have a loss of$5400.00
. I'd have to make at least that much on my investments just to break even.( assuming that I am not paying any interest on credit cards, cars, or other financed items, in which case I will still be in the hole
)Please IM me, if you know of any safe or moderately risky investments funds that have routinely made as much as 8 or 10% consistently in the last few years, much less 14%
. I am surprised the moderators have permitted some of these posts to remain, since they are off the original thread subject. But to get back on subject, I have rethought the financing of a pool. If you need to borrow money to have a pool, perhaps you could borrow from your parents or other relatives that would let you have the funds interest free. Better yet, get them to finance your house interest free!
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