Nice, that calculator and webpage is great! I had forgotten to consider taxes on the invested funds, but I think I'm save 'cause I shouldn't be realizing taxable gains until I'm in a lower tax bracket which should drop my LT capital gains tax to 0%. Also, I am already maxing out my 401k in all scenarios so all of this is post tax investment.
I've also launched into full spreadsheet mode and done some more calcs. First of all I had thought I was paying with a plan to pay off this mortgage in a total of 7 years, but turns out I must have fat fingered my timeframe when I originally calculated how much I should pay on my loan each month. Turns out with my current monthly payment plan I'm expected to pay a total of 8 years not 7, ugh. I've currently got 91 months left till mortgage freedom.
Even so, taking the lower monthly payment and investing the difference does end in more profit long term. I calc'd new numbers for returns and expenses over 10 years which is the longest amount of time I'm likely to actually spend living in this place.
Both scenarios, we'll assume the condo neither appreciates or depreciates so is worth $435,000 total, half of which is mine giving me $217,500 house value.
30 yr mortgage plan
total interest paid (first 10 years): $-57,433.78
FV 7% 1,268.63/mo over 10 years: $219,580.58
Amount left on loan: $-129,083.90
Money from selling house: $88,416.1
Amount of money I have at the end: $307,996.68
Current Plan
total interest paid (91 months): $-20,987.49
FV 7% 2044.52/mo 29 months (120-91 months): $64,397.32
Amount left on loan: $0
Money from selling house: $217,500
Amount of money I have at the end: 281,897.32
260,910
So in theory at the 10 year mark I should be $26,099.36 wealthier by going with the 30 year mortgage. According to bankrate.com I can expect an average closing cost of $2,078 for my state. I don't think I care that I'm paying more in interest as long as I have more money at the end, right? Am I forgetting anything here? Completely wrong?