Quote:
Originally Posted by john70t
Loan interest increases the actual price paid for a piece of real estate 2-4 times.
Over the span of time, a $100K price tag is actually a $300K pricetag. You can check the math for yourself using a mortgage calculator.
But with higher income/wages, paying this extra interest makes sense because the deduction drops your income tax bracket. Inflation also decreases the value of this interest over time...as long as wages increase accordingly.
|
OR you could GIVE to the charity of YOUR choice the same amount as the interest that you would pay if you were paying interest and get the same tax break. WHY if you could would you make a bank or the .gov rich?