First rule of thumb ... don't pay a $1 of mortgage interest if you don't need to ... the best you can hope on your tax return is 32 cents back ... not a good trade. Now if you can invest the 160K and make more in earnings than the interest rate you need to pay for the mortgage then that is a valid reason to have a mortgage. Sounds like sitting down with a local financial planner to go over all your financial options and goals would be your best bet.
