Johnnymac

I am about to purchase wood floors for my house. The total will be 7K. I have the cash to pay for it now but I am thinking of taking a Home Equity Loan for the total @ 3.9% on a 24 month term. I will then take the 7K and buy a money market certificate (the credit union version of a cd) at for either 2 years @3% or a 5 years @ 5.25%.

Since I can write off the interest on the loan come tax time I am trying to figure out if I will come out ahead when it's all said and done.