[AlaskaErik]

Over the term of that 30 years, you'd pay $173,757 worth of interest. But at the same time, you'd save $52,127 over that same 30 years in taxes from the interest deductions. Thus, you'd have an effective cumulative interest of $121,630 ($173,757 - $52,127). That being the case, your effective interest rate is closer to 4.5% than the stated rate of 6%.

The effective interest is immaterial. You're still out over $121k. If you take out a 15 yr loan at the current rate of 4.5%, your interest would be $56,548. Lop off that 30% and you're still out $39,584. $121,630-39,584=82,046. That $82,046 is money paid on interest that will never do anything for you.

[sysvr4]

That's all true. But don't forget that you can invest the difference in the payments over the course of the loan, and in most cases come out significantly ahead of where you would have been if you put it in the mortgage.

I will leave you to consult with Rick Edelman, Ray Lucia, and financial planners worth their salt everywhere. The simple fact is that if you can borrow money at an effective interest rate of cheaper than you can make money, wouldn't you want to do that for as long as possible?

If I would loan you money at 4.5% for 1 year and you know you would make 6,8,10% on that money that year, you'd do it right? Would you do it for 10 years? You'd probably ask me to do it for life if I'd be willing, right? This is what the bank + government is willing to let you do if you're only quick enough to realize it.

Jeff

[Atlas Sneezed]

"That $82,046 is money paid on interest that will never do anything for you."
You forget that investing the monthly payment difference will probably more than offset that cost.