sdcellar You’re an idiot.

[sdcellar]

sdcellar

You’re an idiot. Mello-Roos is typically not tax deductible, so the marginal tax benefit in the original example completely disappears.

Purchase price: $800,000
Down Payment: $400,000
Loan Amount: $400,000
Interest Rate: 6.5%
Tax Rate: 1.0%
Mello-Roos Rate: 0.5%
Fed Tax Rate: 25%
State Tax Rate: 8%

Interest Payment: $2,166.67
Property Tax: $1,000.00
(Originally stated) Tax Benefit: $1,045.00
Revised Tax Benefit: $935

and Chrispy, I’ve been meaning to mention that it’s situations like your landlord that piss me off. Thanks for the perfect example.