“But I like the mortgage interest tax savings”

16-03-24-11-02-12-102_deco

What?! Why?

Because you pay MORE to the bank to save LESS to Uncle Sam. Check it and get your calculator:

What do I pay the BANK/yr?

1. Type in your mortgage $200,000
2. Multiply by your interest rate, say 4.5%

200000 x .045 = $9,000

In interest! Sickening, right?

Don’t I get that back in taxes?
NO! Just a portion.

What do I get back in taxes?

3. Take that interest amount ($9,000) and your tax bracket. Let’s say 28%.

9000 x .28 = $2520

So, at the end of the year, how much has my mortgage cost me?

$9000-2520=$6480

Who couldn’t use an extra $500 a month?

Wow!

Source: Dave Ramsey

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