3 ms·
US tax law heavily favors owning instead of renting. Mortgage interest can be deducted from your income before you pay taxes, so early on in the loan when your
by TheCoelacanth 9y ago
US tax law heavily favors owning instead of renting. Mortgage interest can be deducted from your income before you pay taxes, so early on in the loan when your payment is mostly interest you are effectively getting a ~30% discount on your mortgage payment.
- twoodfin 9y agoAlso important is that capital gains on your primary residence are (for typical homes) tax-free.
- JBlue42 9y agoThis was the only self-interested part of the new tax bill that I could get on board with. I think at one point it was going to get rid of the mortgage interest deduction entirely (now it keeps it below $750k, I think). As a renter in LA, who never plans on being able to afford a house here, I was personally ok with them twisting the knife a little on folks that get a double break in not only the mortgage interest deduction rate but also get to keep their property tax low due to Prop 13. Whereas I pay ever increasing rent plus, to help fund public transit, we end up paying more in sales tax.