Net worth advantage after 20 years
$0
Same home, same mortgage, same appreciation either way — the entire gap is the leveraged portfolio, net of every after-tax dollar it cost to carry.
Net worth — borrow & invest
$0
Net worth — no borrowing
$0
Amount leveraged
$0
Annual interest cost
$0
gross, interest-only
Annual tax deduction
$0
interest on money borrowed to invest is deductible
After-tax cost of carry
$0
effective 0.00%/yr · spread 0.00%
Portfolio at horizon
$0
vs. loan balance $0
Net worth: two paths
Both lines include the same home, growing at the same rate, carrying the same mortgage. The gap is what leveraged investing adds — or costs.
Borrow & invest
No borrowing
Net worth advantage
▸ Show year-by-year detail
| Year | Home value | Portfolio | Loan balance | Net worth — borrow & invest | Net worth — no borrowing | Advantage |
|---|
How the loan and portfolio behave
The mechanics behind the net worth gap: the portfolio the loan buys, against the flat, interest-only loan itself.
Investment portfolio
Loan balance
Net strategy equity