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>Back then deducting your interest from your taxes was very important. Because of how mortgages are amortized, the deduction's value to the taxpayer doesn't va
by xxpor 5y ago
>Back then deducting your interest from your taxes was very important.
Because of how mortgages are amortized, the deduction's value to the taxpayer doesn't vary directly with the interest rate, but with the total value of the mortgage. Your payments are always going to be mostly interest in the first few years, transitioning over to principal in the later years.
- bluGill 5y agoMost people are getting raises, so as the deduction loses value the raise is making up for the loss. Not important today when basically nobody qualifies for the deduction.