Plus loans vs home equity/mortgage loans

nkl811
Wed, 28 Apr 2010 10:12:05 +0000

We will have our home paid off in less than a year. It seems like a no brainer to refinance our home on a ten year mortgage and pull out the $100K needed to cover her expenses at a top private U instead of using a plus loan. Looking at 4% vs. 8.5% and the additional tax write off for mortgage interest that we will soon be losing seems to be a no brainer. In our income bracket, I have a feeling we lose the ability to write off the plus loan interest. I understand the risks involved- bankruptsy divorse, death. In our situation, do you think a refinance is the best way to go? I just want to make sure we are doing the right thing.