4 ms·
In the US interest payments are tax deductible (it’s a bit complicated because there are cliffs and limits involved) which lessens this. For me personally I ma
by opportune 4y ago
In the US interest payments are tax deductible (it’s a bit complicated because there are cliffs and limits involved) which lessens this.
For me personally I max out the SALT deduction which is barely less than the standard deduction, so most interest payments would be “discounted” by my highest marginal tax rate, which is a lot. Basically you end up with a 30-50% discount on mortgage interest in some cases
- lotsofpulp 4y agoThe mortgage interest tax deduction requires itemizing (foregoing the standard deduction), and only 10% of US tax filers itemize.
- opportune 4y agoYeah, and those are probably all homeowners, and will be skewed more towards those with higher incomes and larger home prices (ie those who are buying in the current market). So basically people on this website who are looking to purchase a home are much more likely to be itemizers/would itemize once they buy a house.