On 26 Jul 2004 04:18:04 -0700, someone wrote:

....there are tax benefits (which I have
no idea how to compute...).

You can NEVER "save money" (NET) by paying more interest. You are
instead paying a dollar to save 35 cents (or so). The ACTUAL tax
effect has to be calculated by your own specific situation, what is
your income, what are your other deductions. But you DO NOT deduct
your interest "from" your taxes. Maybe "on" your taxes but that is a
big difference.

Instead, the interest is an allowable deduction from income, so your
taxable income is less if your interest is more, but since you are not
taxed at a 100% rate, that's why for most folks at best its spending
$1 to save 35 cents. For many people, its much much less, they don't
make enough to begin with to be in a high rate class, and/or they have
other deductions that bring them down already.

-v.