15 or 30 yr on Refi?

[Sowhat]

Assuming I can afford to refi the 23 yrs left on my mortgage to a 15yr, do I?  Initially, its a no brainer, I save 8 years, but where will I ever have access to money at 4%?  If I take the 30 yr and bank the difference of what I'd pay the 15th, I'd build up a sizeable number at 4%, tax deductible.  Has this been addressed here?

[myb821]

Assuming I can afford to refi the 23 yrs left on my mortgage to a 15yr, do I?  Initially, its a no brainer, I save 8 years, but where will I ever have access to money at 4%?  If I take the 30 yr and bank the difference of what I'd pay the 15th, I'd build up a sizeable number at 4%, tax deductible.  Has this been addressed here?

ur paying 4% for that money will u be able to invest it and get more than 4% back? or will u have a use for that money that makes it worth it to you to pay that 4%?

[Smirk]

30yr. Unless your bad at saving, and are looking for forced savings. Your payment will remain the same and in 20 years will be a joke compared to what it is now as ratio of earnings

[asd]

if your one of those worried types and will sleep better with your mortgage paid off go 15 otherwise 30 is better for a variety of reasons mainly tax deduction and smaller monthly payments and in 30 years that $1800 payment will be worth in those years much less(although if your rich and have huge payments try to pay it off as soon as possible so when you will probably lose your money we wont have to go collecting to make your payments)

[michael]

What is your marginal income tax bracket? If you're paying 35%, you may deduct the interest portion of your mortgage payment at that rate. This means that you effectively pay only 2.6% interest. If you can invest the money and earn above 3.1% (either through long term capital gains or through dividends), you only pay 15% taxes on that (provided congress extends the 15% tax rate at the end of 2012). Effectively, you're left with 2.63% return after taxes.

Of course, there are many other factors to consider. Speak to your financial adviser.