Financing Strategies and Debt Management

Free CFP Exam lesson in General Principles of Financial Planning. 15 min read, ~2,305 words.

HELOC interest is deductible only when proceeds are used to buy, build, or improve the home, the exam's favorite debt trap. Refinancing breakeven: closing costs divided by monthly savings = months to recoup. After-tax borrowing cost = rate x (1 - marginal rate), but only if the client itemizes. IDR...