http://texas-home-equity-loan.com/calculation-question-what-is-better-to-pay-off-overall-with-consideration-to-tax-deductions/ Best Home Equity Loan Information, Tips, Guide And So Much More. Fri, 12 Mar 2010 09:30:22 -0700 http://wordpress.org/?v=2.8 hourly 1 http://texas-home-equity-loan.com/calculation-question-what-is-better-to-pay-off-overall-with-consideration-to-tax-deductions/comment-page-1/#comment-6794 Judy Sun, 15 Nov 2009 15:49:00 +0000 #comment-6794 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. 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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