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What is your after tax savings of the interest

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Reference no: EM132957218

Question - Suppose you owe $10,000 on your credit card with a 15% APR. You have an opportunity to refinance your home and you could pull out some equity to pay off the credit card and add the debt into the new home loan at 4% APR.

What is the annual Interest paid to credit card company?

Is this interest tax deductible?

Annual Interest paid (of the $10,000) debt with the home loan?

Is this interest Tax Deductible?

Assuming you are in the 28% tax bracket, what is your after tax SAVINGS if you pay down the $10,000 debt in your home loan?

What is your after tax savings of the interest if you choose to pay off the credit card and put the $10,000 into your home loan?

Reference no: EM132957218

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