[quote=SK in CV][quote=CA renter]
I would argue that they are taking out a mortgage in order to preserve cash because they think they can earn more on that money than what they are paying in interest.
Contrary to the realtor rhetoric about the “benefits” of MID, it never makes sense to spend a dollar in order to save 30-40 cents (and that’s if you’re earning a pretty significant income) on taxes.[/quote]
I agree entirely. The argument that an interest deduction is “needed” for taxes is stupid. It was stupid back when the top tax rate was 70%. Using the leverage to increase overall return might make sense for some people.[/quote]
I totally agree CAR and SK in CV! I’ve never seen so many people in the USA overjoyed at paying interest payments to the bank so they can take the tax “benefit”. I get overjoyed RECEIVING interest but I do NOT get overjoyed PAYING it out to someone else over multiple years/decades.
