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by ohsnapman
4412 days ago
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Questionable - remember that interest over the life of a 30 year loan often dwarfs the principal itself. Depending on how long you live at a place, whether the price goes up or not if you sell and various sales costs, your tax "savings" from deducting mortgage interest might only be a small discount on getting screwed in general. |
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I'll happily take out a mortgage on an income-generating property, deduct interest from my taxes, and essentially lease-to-own a building on leverage while generating some modest cash flow as part of the deal. That's when a large mortgage makes sense.
On the other hand, taking out an expensive mortgage to buy a residence I couldn't otherwise afford? Much more dicey, even after accounting for the tax deduction, appreciation, etc.
Call me old fashioned, but I only like debt when it works for me, not when I work for it.