This will mathematically save you the most amount of interest in the long run, every time.

Looks like that is the amount of interest savings that can be directly attributed to the $130k pay-down itself.9) For fun, lets try one last mathematical 'verification'.

That being said, early loan pay off doesn't make mathematical sense in most cases. 

Your plan has to fit your life not be the most optimal mathematically.

If, on the other hand, you will not be OK, and you view RE as your ticket to get to where you're going, then by staying on the sidelines you are loosing - you opportunity cost is very high in this case, and you need to take the opportunity.We could get quite mathematical about it, but why?

I guess mathematically speaking, it would be best to rent my current home that way that guarantees me an investment loan with a great rate and cash flow for sure.

So I do the finance and mathematic analysis required for this sort of thing almost everyday!

Hi BP, my name is Jonny Cartier and I am a student of BSc Mathematics with Economics at University College London (UCL) in London, UK.As this is the summer before my final year, I have been working as a summer analyst for an asset manager on a rotational internship.

Mathematically, the CAPitalization Rate is a simple ratio (as depicted in several posts above).  

 Conceptual opinions, don't really have a place in mathematical formulations.