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Not so fast. The money we currently pay for mortgage will end up going towards health insurance ~ something I pay very little for right now in my employment. So . . the logic isn't so difficult, either. :-)
Check your math... You get back a FRACTION of what you pay.
Theman, how about if you share the formula you used to determine if paying the house is better than not paying it. I am really interested to understand your logic and would like to learn how to save real money not just pennies cutting coupons. thanks
Theman, how about if you share the formula you used to determine if paying the house is better than not paying it. I am really interested to understand your logic and would like to learn how to save real money not just pennies cutting coupons. thanks
Don't know if your sarcastic or serious...But read the section entitled "a poor trade"
Quote:
Originally Posted by WhoeverCJis
The 2009 standard deduction for married couples will be $11,400.
That means in order to gain any benefit from tax deductions, your interest paid must exceed this number.
Really? Mortgage interest alone must be more than the entirety of the standard for that to make sense?
I didn't go any farther into their thinking once I saw this absurdity as the first premise.
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On point: there are still all sorts of good reasons to pay off your mortgage...
and separately there are still all sorts of good reasons to do so as soon as you can.
This is just a lousy example of the reasoning.
Thank you, I am serious about this and been reading different articles about the dos and donts and wanted to hear from someone who actually did that work.
I used TurboTax to prepare my taxes this year so I went to it and just changed the deductions a little. Here are the approximate figures without going into too much details.
Total deductions with about $7000 in interest - $2500 refund.
Removed the $7000 interest and still was able to do itemized - $1000 refund.
Conclusion: I would have been $5500 richer if I had paid my house last year even thou the value of the house is $10,000 less than what I paid for it 2 years ago.
Again, thanks everyone for adding to this thread, it's a great one.
Last edited by happehart; 06-03-2011 at 07:14 AM..
Reason: Adding more info
I would prefer to donate to a charity of my choice to get the deduction, than "donating" it to the bank to get the same deduction.
Surely you must realize that when you make a mortgage payment you are getting more in return then just the deduction.
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I am serious, that's why I posted my initial post
