Thanks.BrandonBogle wrote: ↑Sat Aug 29, 2020 12:03 amDon’t forget the time value of money and potential inflation (if you believe we’d have inflation over the next 30 years).need403bhelp wrote: ↑Sat Aug 29, 2020 12:01 am Thanks for your advice re going with lender #1.

I wish 2.375% 30 year fixed was on my rate table, but it is not and they won’t budge on giving me that rate.

FWIW, the difference in interest over the entire 30 years between the two loans is $6598.04, so I guess I could think of it as them giving me half the difference between the two loans but all up front.

I tried to clean up my analysis a bit this morning (I have a few days to decide).

Given some of the debate re the taxability of the AMEX credit, I decided to assume it is taxable just in case (worst case scenario, it is not a huge difference).

Looks like "break even" without inflation is 10 years (it is at end of year 9 but I start at year 0 in my calculations, hence my prior error).

Interestingly, inflation doesn't make a huge difference (assuming I did my calculations correctly, I tried to do it two different ways, comparing present values “reverse adjusted” for inflation and also future values adjusted for inflation, and break-even seems to match up).

If we assume 1% inflation, break-even moves from 10 years to 10.5 years.

If we assume 2% inflation, break-even moves from 10 years to ~11.3 years.

Maybe it is just because the relative amounts of interest are pretty small, so inflation doesn’t do a much to them.