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Refinancing allowed me to upgrade cash-flow by reducing my monthly mortgage payment, while at the same time padding my HMI deduction by front-loading the interest portion of those payments all over again. Win-win. The equity line bit provided a renewed low-interest ten-year draw period to buffer against having to liquidate performing assets in order to meet elective or other expenditure blips. Household Finance 101.
How many years were you into the original mortgage before re-financing?
It wouldn't have mattered, as you plainly don't understand. As the new rate I could refi into was more than 1% below the rate I had refi'd into previously, it made sense to go around the block yet again. Good work by me!
It wouldn't have mattered, as you plainly don't understand. As the new rate I could refi into was more than 1% below the rate I had refi'd into previously, it made sense to go around the block yet again. Good work by me!
I understand perfectly. Why would you possibly think otherwise?
It wouldn't have mattered, as you plainly don't understand. As the new rate I could refi into was more than 1% below the rate I had refi'd into previously, it made sense to go around the block yet again. Good work by me!
Of course the timeline you are at your mortgage when you refi matters. But keep thinking it doesn't and you're always "saving " money when you refi. Sometimes doing a refi is pointless.
I have a rental right now that makes no sense to refi even if I could. The savings just aren't there I'm not pulling money out and the mortgage balance is low that nobody would refi anyway.
"Redistribution" requires taking from one and giving to another. One who deducts mortgage interest isn't being given anything.
When Bob takes the MID, how much more does Tom pay, and what is the mechanism by which this tax increase happens?
They ARE being given something at the STATE level because states MUST balance their books annually and cannot spend beyond their revenue.
If one quarter of a state's taxpayers takes MID, either the state must reduce spending or an equal amount of additional revenue must be raised.
Sometimes spending cannot be cut, as in the case of a politically sacred cow. In that case, the state MUST increase taxes on SOME taxpayers.
Because states cannot spend beyond their revenue, and because state tax revenue is reduced when taxpayers take MID, the state must either cut spending OR increase taxes on some or all taxpayers.
e.g. Michigan repealed all school operating millages in 1993, and immediately scrambled to raise OTHER taxes because a state cannot simply allow public schools to go unfunded. In exchange for the repeal of school millages, voters ended up with a higher sales tax and landlords/business owners ended up with a steep new school property tax.
One would be very plainly saving $200. It is not going away as part of your monthly mortgage payment anymore. Like found money, it becomes yours free and clear to do with what you want.
They ARE being given something at the STATE level because states MUST balance their books annually and cannot spend beyond their revenue.
If one quarter of a state's taxpayers takes MID, either the state must reduce spending or an equal amount of additional revenue must be raised.
Sometimes spending cannot be cut, as in the case of a politically sacred cow. In that case, the state MUST increase taxes on SOME taxpayers.
Because states cannot spend beyond their revenue, and because state tax revenue is reduced when taxpayers take MID, the state must either cut spending OR increase taxes on some or all taxpayers.
e.g. Michigan repealed all school operating millages in 1993, and immediately scrambled to raise OTHER taxes because a state cannot simply allow public schools to go unfunded. In exchange for the repeal of school millages, voters ended up with a higher sales tax and landlords/business owners ended up with a steep new school property tax.
MID is a federal writeoff not state. If states allow it that is on them. My state doesn't allow many writeoffs, including mortgage.
MID is a federal writeoff not state. If states allow it that is on them. My state doesn't allow many writeoffs, including mortgage.
Hmmm. You have claimed to live in zip code 27616 which is Raleigh, NC. Mortgage interest is in fact deductible under North Carolina tax law. There is however a cap of $20,000 on the sum of mortgage interest and property taxes that can be deducted.
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