May 18, 2016

Interest Only Calculator

http://www.planabettermortgage.com.au/loan-calculators/p--i--interest-only.htm

http://www.yourmortgage.com.au/article/the-dangers-of-interest-only-loans-83319.aspx

https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/interest-only-mortgages

let say the montly IO payment is 1000, one year is 12000
the tax deductible is 12000 let say the tax rate is 25 % then you save 3000 tax deduction
for a loan of 200k with 5 years loan and 5.5 interest rate. the tax deduction for IO is 13250 however the interest incured in IO is higher than P&I with amount 25786 even in a short term as 5 years, IO costs more than P&I loan
Haha.. I ll take some times to understand it..

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