[quote=CA renter][quote=FormerSanDiegan][quote=CA renter]
I’ve often questioned the wisdom of paying a dollar in interest in order to save 30-40 cents in taxes.

Am I missing something?
[/quote]

The answer to your question is yes, you are missing something in that statement. You are missing the alternatives for comparison.

Obviously in a vacuum it makes no sense to pay $1 to save 30-40 cents in taxes.

It’s not as simple as comparing paying a dollar to get 30-40 cents back versus not paying that dollar.

If you compare

A. paying $1 and saving 30-40cents in taxes (by having a mortgage)
to
B. paying 75 cents and saving zero in taxes (by renting)
it might make sense, depending on other deductions relative to the standard deduction.

You can also compare the use of cash for other inverstments versus buying a place for cash as others have above.

Of course, I know that you know these things. It’s just that the wisdom (or lack therof) of paying a dollar to get 30-40 cents back, depends on the alternatives.[/quote]

The OP was questioning whether he should pay cash, or get a mortgage. It wasn’t a rent vs. buy issue.

[/quote]

No, the original question was not cash or get a mortgage. The question was how big of a mortgage. All cash wasn’t an option. And I’m quite sure I didn’t address rent vs. buy.