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One might add, the amount of a mortgage payment that goes toward interest -- which is most of it at the beginning, and the fraction comes down only slowly -- is
by ScottBurson 10y ago
One might add, the amount of a mortgage payment that goes toward interest -- which is most of it at the beginning, and the fraction comes down only slowly -- is just as "wasted" as rent would have been.
- jimmywanger 10y agoWell, the interest part of the mortgage payment is tax deductible, so that offsets things somewhat. Not 100%, but somewhat. Basically the amount you're paying in interest is tax-deductible, but you're not building equity.
- dionidium 10y agoThis benefit is often overestated (especially in discussions focused on the parts of the country with the highest housing costs (which is to say, places unlike Texas)). This guy was paying $800/mo for rent, so presumably he'd be looking at mortgages near that cost. If so, he'd almost certainly just take the standard deduction.