Reply #52: even when you factor in the interest deduction on taxes it isn't a deal [View All]

cuz...the feds give you approximately $0.30 back for each dollar in interest spent.....so even on the $350,000 in interest that is about $98,000 in tax deductions over 30 years...and that is if your tax income bracket is that high...it may be lower...

People generally don't realize all that savings and many don't save it or even wisely put it towards principal...

So in the end if you have a 400K house and pay out 350K in interest ...and say you get 100k back on the taxes you write off....then....you are looking at a house that cost you 650K and will it be worth that when you go to sell it? If not then the "investment" in your home did not pay off as well. Now I realize that homes are more than just investsments...you live in them and you use them...they also bring enjoyment...but it is something that people should really think long and hard about before taking the plunge into the house debt bucket...