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by CareyBot

"In your columns on repaying mortgage loans, you skip over a detail that I have often wondered about ... I don't think that saving 6 percent interest on a mortgage is quite the same as earning 6 percent on other investments because mortgage interest is deductible ... I get further confused by the possibility that the income taxes due on other investments may be deferred if they are in a 401K or other tax-deferred retirement account...." In numerous articles, I have argued that mortgage repayment should be viewed as an investment with a yield equal to the mortgage rate -- and that this yield should be compared to those available on other low-risk investments. The "low-risk" qualifier is important, because mortgage repayment has zero risk to the borrower. You are right that in making such co...