Here’s a “SUPER DOH!” moment for you:
There’s a MYTH that mortgage interest is a tax write off.
MYTH MYTH MYTH!!
Here’s how it REALLY WORKS:
You paid $10,000 in mortgage interest last year. The Tax form from the bank says so.
You DON’T get all that $10,000 back. The bank keeps it.
You only get back your tax bracket % x the mortgage interest.
$(Mort interest)*(your tax bracket %)
YOU GET:$2,500 back
You have paid the bank $10,000 to the bank to keep $2,5000 from the government.
What if you had NO MORTGAGE?
You could KEEP the entire $10,000!