What should you do with extra cash: prepay your mortgage each month, or invest it instead? This tries to take into account your tax situation and assumes you always itemize in order to give you a "real world" scenario. (Remember to talk to a tax professional!)
how much extra do have to spend each month?
$
current monthly payment
(Principle & Interest Only)
$
current interest rate
%
current loan balance
$
loan interest deductable?
expected long term investment return
under mattress (0%)
checking account (2%)
money market account (4.5%)
CD's (6%)
long term bonds (7%)
conservative stocks (8%)
moderate stocks (9%)
aggressive stocks (10%)
high roller (12%)
illegal activities (15%)
loan shark (20%)
expected long term tax rate
(state+federal)
%
Investment Type
After Tax
Tax Deferred