When you move up a marginal tax rate, only that portion of your income that falls into the higher Federal Income Tax bracket is taxed at the higher rate. (freefrombroke.com)
If your mortgage interest rate is 4 percent and you're in the 28 percent federal income tax bracket, your after - tax mortgage rate is approximately 2.9 percent. (themortgagereports.com)
But if you're in one of the top federal income tax brackets and live in a state with high income taxes, you may come out ahead with a tax - free fund. (kiplinger.com)