Loan Officer Scare Tactic

[pepsi]

[quote=esmith][quote]When you take interest tax deduction, you lost your $10700 (if file jointly).
So, the saving should be $568, not $1063[/quote]

(2550 + 550) * 12 – 10700 is 26500, tax savings of $552/month (federal) and $205/month (state). And that assumes that you have nothing else to deduct. But, at the very least, you can deduct your previous year state tax and all DMV registration fees of your cars.[/quote]

So the cost of ownership is
2550 + 50 + 550 + 350 (use AN’s number) – $552 – $205 = $2743

So, is it the time to buy now ?!

[smshorttimer]

[quote=asianautica]CardiffBaseball, I think it’s pretty safe to say tax benefit cancel out the tax you have to pay. I ran many loan amortization calculation and that’s my conclusion as well. That’s why I usually just ignore tax benefit and property tax and just concentrate on PI vs rent.[/quote]

Not if you are in a lower tax bracket, such as 15%. Our last place, we paid $280-$290 monthly for PT; no way did our mortgage interest/PT deductions cancel all that out. More like little more than half.

+ there’s hazard insurance (which is more than renter’s insurance) and HOAs (if applicable).

My most recent calculation – using Microsoft Money – estimated tax savings of about $160 a month if we were to acquire a mortgage in our price range of mid to uppermid 200s)

[smshorttimer]

[quote=asianautica]CardiffBaseball, I think it’s pretty safe to say tax benefit cancel out the tax you have to pay. I ran many loan amortization calculation and that’s my conclusion as well. That’s why I usually just ignore tax benefit and property tax and just concentrate on PI vs rent.[/quote]

Not if you are in a lower tax bracket, such as 15%. Our last place, we paid $280-$290 monthly for PT; no way did our mortgage interest/PT deductions cancel all that out. More like little more than half.

+ there’s hazard insurance (which is more than renter’s insurance) and HOAs (if applicable).

My most recent calculation – using Microsoft Money – estimated tax savings of about $160 a month if we were to acquire a mortgage in our price range of mid to uppermid 200s)

[smshorttimer]

[quote=asianautica]CardiffBaseball, I think it’s pretty safe to say tax benefit cancel out the tax you have to pay. I ran many loan amortization calculation and that’s my conclusion as well. That’s why I usually just ignore tax benefit and property tax and just concentrate on PI vs rent.[/quote]

Not if you are in a lower tax bracket, such as 15%. Our last place, we paid $280-$290 monthly for PT; no way did our mortgage interest/PT deductions cancel all that out. More like little more than half.

+ there’s hazard insurance (which is more than renter’s insurance) and HOAs (if applicable).

My most recent calculation – using Microsoft Money – estimated tax savings of about $160 a month if we were to acquire a mortgage in our price range of mid to uppermid 200s)

[smshorttimer]

[quote=asianautica]CardiffBaseball, I think it’s pretty safe to say tax benefit cancel out the tax you have to pay. I ran many loan amortization calculation and that’s my conclusion as well. That’s why I usually just ignore tax benefit and property tax and just concentrate on PI vs rent.[/quote]

Not if you are in a lower tax bracket, such as 15%. Our last place, we paid $280-$290 monthly for PT; no way did our mortgage interest/PT deductions cancel all that out. More like little more than half.

+ there’s hazard insurance (which is more than renter’s insurance) and HOAs (if applicable).

My most recent calculation – using Microsoft Money – estimated tax savings of about $160 a month if we were to acquire a mortgage in our price range of mid to uppermid 200s)

[smshorttimer]

[quote=asianautica]CardiffBaseball, I think it’s pretty safe to say tax benefit cancel out the tax you have to pay. I ran many loan amortization calculation and that’s my conclusion as well. That’s why I usually just ignore tax benefit and property tax and just concentrate on PI vs rent.[/quote]

Not if you are in a lower tax bracket, such as 15%. Our last place, we paid $280-$290 monthly for PT; no way did our mortgage interest/PT deductions cancel all that out. More like little more than half.

+ there’s hazard insurance (which is more than renter’s insurance) and HOAs (if applicable).

My most recent calculation – using Microsoft Money – estimated tax savings of about $160 a month if we were to acquire a mortgage in our price range of mid to uppermid 200s)

[ucodegen]

What if you can’t deduct mortgage interest because you keep hitting against AMT? People who can afford $600k houses are upper income and are more likely to run into this problem, in particular if you are single and have investment income as well as salary based income.

On a side note, I am a bit suspicious of the original article. The statement “– As Loan Officers we are not interested in having our income deferred…” seems to have a bit too much ‘cheekiness’ in it.

[ucodegen]

What if you can’t deduct mortgage interest because you keep hitting against AMT? People who can afford $600k houses are upper income and are more likely to run into this problem, in particular if you are single and have investment income as well as salary based income.

On a side note, I am a bit suspicious of the original article. The statement “– As Loan Officers we are not interested in having our income deferred…” seems to have a bit too much ‘cheekiness’ in it.

[ucodegen]

What if you can’t deduct mortgage interest because you keep hitting against AMT? People who can afford $600k houses are upper income and are more likely to run into this problem, in particular if you are single and have investment income as well as salary based income.

On a side note, I am a bit suspicious of the original article. The statement “– As Loan Officers we are not interested in having our income deferred…” seems to have a bit too much ‘cheekiness’ in it.

[ucodegen]

What if you can’t deduct mortgage interest because you keep hitting against AMT? People who can afford $600k houses are upper income and are more likely to run into this problem, in particular if you are single and have investment income as well as salary based income.

On a side note, I am a bit suspicious of the original article. The statement “– As Loan Officers we are not interested in having our income deferred…” seems to have a bit too much ‘cheekiness’ in it.

[ucodegen]

What if you can’t deduct mortgage interest because you keep hitting against AMT? People who can afford $600k houses are upper income and are more likely to run into this problem, in particular if you are single and have investment income as well as salary based income.

On a side note, I am a bit suspicious of the original article. The statement “– As Loan Officers we are not interested in having our income deferred…” seems to have a bit too much ‘cheekiness’ in it.

[smshorttimer]

True. I was waiting for someone to call BS. Maybe it was inside-baseball humor. As the OP stated, it was internal and not intended for them.

[smshorttimer]

True. I was waiting for someone to call BS. Maybe it was inside-baseball humor. As the OP stated, it was internal and not intended for them.

[smshorttimer]

True. I was waiting for someone to call BS. Maybe it was inside-baseball humor. As the OP stated, it was internal and not intended for them.

[smshorttimer]

True. I was waiting for someone to call BS. Maybe it was inside-baseball humor. As the OP stated, it was internal and not intended for them.

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