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?
Who couldn’t use an extra $500 a month?
Source: Dave Ramsey