This should probably go under another category, but my wife and I are retired and trying to figure out long terms implications of keeping a mortgage. Long story short --- I'm looking for a layman's methodology to figuring out if it's cheaper to pay the bank (mortgage) to avoid taxes, or just take the tax hit with no mortgage interest deduction. We have some small income streams (legal and reported: we are over the age of 70) + social security and pension income where we are claiming the max deductions (single 0 or married 0). At the end of next year, we'll probably be starting to receive RMDs, but we usually allow for the highest deductions. We do have some decent interest income. I believe we would fall comfortably with the 22% tax bracket --- if those brackets stay the same.
Is there any calculator out there or way to run this scenario? I can start by looking at mortgage amortization tables to calculate the amount of interest we'd owe, but I'm stumped after that.
