Calculation question, what is better to pay off overall with consideration to tax deductions…?

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One Response to “Calculation question, what is better to pay off overall with consideration to tax deductions…?”

  1. Judy says:

    Your tax savings on a deductible item is 15% of the expense, so on the heloc 7.75%, you’re still paying 85% of the interest, or .85 * 7.75%, or 6.59%, out of pocket. So paying that off still saves more than pying off the auto loan. The effective interest on the school loan is 4.59 so is the lowest of the three – pay that off last.

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