Re: Owning a house.
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Also the "You can deduct your mortgage" is overrated.
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You pay about 60k in interest in the first 5 years on a 250k 25 yr loan at 6%. That seems like a substantial chunk to me to be able to deduct.
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Right, so 60k/5 is 12k. You already get to deduct $10,300 no matter what. Now you got to deduct $1700 by paying 12k in interest. You saved about $425 in taxes. After the first 5 years or so the interest will be less then your standard deduction and you will not be able to deduct anything. What you don't get I guess is that you and your wife already can deduct most of the mortgage advantage anyway. If you are single it has more of an advantage but it still is not as good as the mortgage industry would want you to think.
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