Monday, September 13, 2010

aditional principal vs investing into an interest account formula?

can someone answer this question buy giving all the facts needed to feed the data into some sort of a formula?



Looking for a way to figure out the formula for investing into an interest account vs making additional payments on a mortgage?



for example the loan is 250k @ 6.5% and a cd is @ 5.0%



assuming the payments are coming from a savings account that are not going to be used for anything other then investing at which point is it prudent to invest in house vs something else?



Also the tax bracket is 28% so consider the deductions