So you want to save the interest on your home mortgage.
Mistake No. 1 - Take out a 15 year mortgage.
Better alternative is a 30 year mortgage with a life insurance policy.
What's the catch - 1. Calculate the monthly loan fee for the purchase for a 30 year amortization.
2. Calculate the monthly loan fee for the purchase for a 15 year amortization.
3. Take the difference in the mortgage fee and find a life insurance policy for that amount.
This fee difference when used to purchase a whole life policy will enable the borrower to pay off their 30 year mortgage in about 17 years.
What is the benefit: A. Pay off mortgage in less than 30 years. B. Take advantage of deducting the interest on a 30 year mortgage for 17+ years. C. If house is sold in less than 17 years, one still has a life insurance policy producing income that is tax free.