Turbo tax! The problem with asking what percentage of a new house will be returned to you via tax refund has too many variables. Dependents, other deductions, and ever increasing amount of taxes that you cant develop a formula because taxes gradually increase and certain income levels phase out deductions. Your filing status alone will swing it wildly. Tomorrows state budget vote will change it as well, so will next years.
Here is my simple way to figure it out:
The tax deduction will be equal to the taxes, insurance and maintenance. So figure if you can afford the principal and interest on your current take home pay and the deduction will cover the other three assuming they are normal.
BTW, 450k on 100k income is not affordable unless you put 150k+ down. Never borrow more than 3x your gross.
Don’t let tax benefits cause you to overwhelm yourself with debt, paying $3 to the bank to avoid paying $1 to the government wont make you rich, you will be out $2.
