Why Don’t Mortgage Calculators Factor Tax Break?

[(former)FormerSanDiegan]

Mortgage calculators are too simple to factor taxes in because it can be drastically different and complicated. For it to be accurate it would have to account for deduction phase outs, AMT rules and many other factors. It’s too complicated to boil down to a simple formula for all people, even though in your case it might be quite simple.

As for figuring it out for your paprticular circumstances. I would definitiely figure out the tax impacts in my analysis of what I could afford. Do not make too many assumptions or use rules of thumb. You wouldn’t make a monthly budget without considering how much you take home versus gross income. Same thing with budgeting for a house.

[WaitingToExhale]

Thanks, I had a few typos. They should be cleared up now. I’ll try to blame them on having stared too long at a variety of online mortgage and rent-vs.buy calculators…

[WaitingToExhale]

Thanks, I had a few typos. They should be cleared up now. I’ll try to blame them on having stared too long at a variety of online mortgage and rent-vs.buy calculators…

[WaitingToExhale]

Thanks, I had a few typos. They should be cleared up now. I’ll try to blame them on having stared too long at a variety of online mortgage and rent-vs.buy calculators…

[WaitingToExhale]

Thanks, I had a few typos. They should be cleared up now. I’ll try to blame them on having stared too long at a variety of online mortgage and rent-vs.buy calculators…

[WaitingToExhale]

Thanks, I had a few typos. They should be cleared up now. I’ll try to blame them on having stared too long at a variety of online mortgage and rent-vs.buy calculators…

[WaitingToExhale]

[quote=scaredycat]i am stunned at the number of people who do not know that there is a satndard deduction. educated people. as if there would be no deduction from your taxes if you did not itemize. the standard deduction is going to be greater than the itemizations ona lot of cheap houses! and when you run the nubers, add property tax — there is no tax savings![/quote]

Absolutely, but the houses we have been looking at are in the range where the property tax and interest are well above the standard deduction. In most parts of the country (the non-crazy parts, IMO), the mortgage deduction is a wash relative to the standard deduction. That’s not the case with many houses in San Diego.

[WaitingToExhale]

[quote=scaredycat]i am stunned at the number of people who do not know that there is a satndard deduction. educated people. as if there would be no deduction from your taxes if you did not itemize. the standard deduction is going to be greater than the itemizations ona lot of cheap houses! and when you run the nubers, add property tax — there is no tax savings![/quote]

Absolutely, but the houses we have been looking at are in the range where the property tax and interest are well above the standard deduction. In most parts of the country (the non-crazy parts, IMO), the mortgage deduction is a wash relative to the standard deduction. That’s not the case with many houses in San Diego.

[WaitingToExhale]

[quote=scaredycat]i am stunned at the number of people who do not know that there is a satndard deduction. educated people. as if there would be no deduction from your taxes if you did not itemize. the standard deduction is going to be greater than the itemizations ona lot of cheap houses! and when you run the nubers, add property tax — there is no tax savings![/quote]

Absolutely, but the houses we have been looking at are in the range where the property tax and interest are well above the standard deduction. In most parts of the country (the non-crazy parts, IMO), the mortgage deduction is a wash relative to the standard deduction. That’s not the case with many houses in San Diego.

[WaitingToExhale]

[quote=scaredycat]i am stunned at the number of people who do not know that there is a satndard deduction. educated people. as if there would be no deduction from your taxes if you did not itemize. the standard deduction is going to be greater than the itemizations ona lot of cheap houses! and when you run the nubers, add property tax — there is no tax savings![/quote]

Absolutely, but the houses we have been looking at are in the range where the property tax and interest are well above the standard deduction. In most parts of the country (the non-crazy parts, IMO), the mortgage deduction is a wash relative to the standard deduction. That’s not the case with many houses in San Diego.

[WaitingToExhale]

[quote=scaredycat]i am stunned at the number of people who do not know that there is a satndard deduction. educated people. as if there would be no deduction from your taxes if you did not itemize. the standard deduction is going to be greater than the itemizations ona lot of cheap houses! and when you run the nubers, add property tax — there is no tax savings![/quote]

Absolutely, but the houses we have been looking at are in the range where the property tax and interest are well above the standard deduction. In most parts of the country (the non-crazy parts, IMO), the mortgage deduction is a wash relative to the standard deduction. That’s not the case with many houses in San Diego.

[WaitingToExhale]

[quote=temeculaguy]One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. …

…. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.[/quote]

TMG, you are exactly right, and this has been our plan. We have no problem qualifying, but as we all know it was “qualifying” but not truly being able to afford that got the world into the mess it is currently in. I’m just incessantly running numbers.

Fortunately, my wife puts up with it all.

[WaitingToExhale]

[quote=temeculaguy]One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. …

…. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.[/quote]

TMG, you are exactly right, and this has been our plan. We have no problem qualifying, but as we all know it was “qualifying” but not truly being able to afford that got the world into the mess it is currently in. I’m just incessantly running numbers.

Fortunately, my wife puts up with it all.

[WaitingToExhale]

[quote=temeculaguy]One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. …

…. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.[/quote]

TMG, you are exactly right, and this has been our plan. We have no problem qualifying, but as we all know it was “qualifying” but not truly being able to afford that got the world into the mess it is currently in. I’m just incessantly running numbers.

Fortunately, my wife puts up with it all.

[WaitingToExhale]

[quote=temeculaguy]One of the reasons it doesn’t factor it in is because the qualification percentage is based on GROSS income. The formula has been used for a long time and is time tested for repayment success. …

…. Try and stay under that number by either waiting for your income to rise, the price of the house to fall or look for a cheaper house.[/quote]

TMG, you are exactly right, and this has been our plan. We have no problem qualifying, but as we all know it was “qualifying” but not truly being able to afford that got the world into the mess it is currently in. I’m just incessantly running numbers.

Fortunately, my wife puts up with it all.

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