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> Investment shenanigans excluded You're poisoning the well there, as that is the major reason to get a mortgage even when you have enough cash to buy a house
by technothrasher 2y ago
> Investment shenanigans excluded
You're poisoning the well there, as that is the major reason to get a mortgage even when you have enough cash to buy a house outright. It's not "shenanigans", it almost always makes financial sense to keep your cash invested elsewhere when mortgage rates are low.
- NewJazz 2y agoAlso mortgage interest is tax deductible.
- goodJobWalrus 2y agoNot in Canada
- ghaff 2y agoAnd, for many people in the US without a lot of deductibles, not in the US either after tax law changes a few years ago.
- NewJazz 2y agoYeah they're going to keep SALT capped farther than they said they would, huh?
- ghaff 2y agoNo idea. I wouldn't count on anything with a new administration/congress.
- NewJazz 2y agoNew? It is the same crowd as 2017. I mean they dropped the McCains, Cheneys, and Paul Ryan. But the rest are still there.
- ghaff 2y agoAnd who knows what the crowd will do in 2025 given new cabinet etc.? Deductions don't really affect me much going forward. I care but not planning around specific policies going forward.
- NewJazz 2y agoYeah I'm not saying it is a determinant. But the new/old head of state is the only one in the admin who matters legislatively. I'm merely musing on the pressure to balance a budget and give away all of our money. I hear he isn't so good with that. Go big or go home tho.
- TexanFeller 2y agoStandard exemption in the US for a married couple is around $30k. If your mortgage is so massive that the mortgage tax deduction is better than the standard deduction then in most cases you bought a far too luxurious house or in a far too “prestigious” location(SF, NYC, etc.). If you’re not already a millionaire you shouldn’t buy such property.
- ghaff 2y agoAs someone else commented, things can of course always change, but as things stand today, it takes a very large mortgage and/or very significant other deductibles to get over the standard deductible at this point in the US.
- NewJazz 2y agoStandard deduction for single people is 15k. SALT can get you to 10k, and anything past 5k in mortgage interest (at 5% rates and 100k balance, you're already at the point) is gain over the std deduction. 22.5% on those dollars for many people. More depednnding on state tax.