May 18, 2016

Interest Only Calculator

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..

No comments:

Related Posts Plugin for WordPress, Blogger...

Popular Posts