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Your interest in the early years is the vast majority of your payment. You only get to write off the mortgage interest times your tax rate. If, for example, the interest portion of your payment is roughly $3000 per month, and you're in the 33% tax bracket, you reduce your taxes by $990/month. Your $4000/month payment effectively becomes $3010/month. This is just a back of the envelope calculation to give you a better idea of what this buys you, and doesn't address the accumulation of equity through paying down the principle and increase in value of the property.
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Jim R.
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