Prepayment vs. Investment

Who We Are
The BlueCollarDollar was designed as a personal finance center where you will find the complicated world of investing and financial planning explained. We take a common sense approach to the money you earn, your investments (mutual funds, bonds, mortgages), retirement planning (IRAs, 401(k)s, etc.), insurance, mortgages, and debt. We want you to have a financially stable retirement, that is both comfortable and healthy.


Money Focus
Mutual Funds
  • Equity
  • Bonds
    Insurance
  • Guide
  • Life
  • Health
  • Auto
  • Home
    Mortgages
  • Buyer's Guide
    Taxes
  • Guide with Calculators
    Step by Step
    Hot Topics
    Contact the Editor


    Featured Site
  • TradersDigest
    AfterHourTrades.com, Inc.
    Featured Columnist:
  • Tax Mama
  • The Blue Money Report
    Amazon Honor System Click Here to Pay Learn More
    All content is © copyright (1998-2003)
    BonPaulProductions (all rights reserved)


  • Order your copy of Building Wealth in a Paycheck-to-Paycheck World by Paul Petillo. It is packed with safe, proven wealth-building strategies that cover all the major components of a balanced financial plan, including:

    • Straight talk on mutual funds, bonds, real estate, and annuities
    • Techniques for avoiding financial disasters
    • Tools to help readers track their debt and create a plan for staying out of it
    • Road maps to buying a home and saving for college and retirement

    Calculators

    Prepayment vs. Investment -- A Scenario

    Now allows you to use loans where you do not deduct interest.

    This form allows you to compare what would happen if you took one of two choices with some extra cash you have -- prepaying your mortgage each month, or investing it instead. This tries to take into account your tax situation and assumes you always itemize (even late into your mortgage when your interest will be lower -- I am assuming you give to charities, and pay state and local taxes too!!)

    Change these fields as desired:

    How much more you have to spend each month
    Current monthly payment (principal & interest only)
    Current Annual Loan Interest Rate
    Current Loan Balance
    Loan Interest Deductibility
    Expected Long Term Investment Return (%)
    Expected Long Term Tax Rate (%) (Federal+State)
    Investment Type