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Mortgage Pre-Payment Penalty Vs. Tax Deferred Savings

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Mortgage and Lending with American Home Mortgage

The Federal Reserve bank of Chicago has issued a very good study on the tradeoffs between mortgage pre-payments and tax deferred savings.  Click here http://www.chicagofed.org/publications/workingpapers/wp2006_05.pdf to read the study.

This article shows that mortgage arbitrage can still exist.  If you need more education on this, please email me at toban.riley@americanhm.com

Robert D. Ashby
Cruise Planners of South Florida - Plantation, FL
Providing Personalized Travel

Mortgage arbitrage can exist in virtually any type of market, so it is always worth looking at.  When tax rates increase (which they will), it will be even easier to make money on that arbitrage.

The Fed actually highlights the need for certified mortgage planners with that report.

May 15, 2007 02:48 AM