Refinance

[Slamz]

I'm fairly sure the mortgage interest deduction will be gone within 5-10 years, probably starting next year for high earners.

I'm betting they'll grandfather in the deductions, if they ever remove them. Otherwise I see it causing Housing Crisis #2 as more people get forced to foreclose due to effectively higher taxes.

The vast majority of homeowners don't use it, because they take the standard deduction.

Maybe if the vast majority of homeowners are married, filing jointly on a modest house or an old loan. If you're filing singly or if you have a newer loan or if it's just a large loan then your mortgage interest deduction alone will exceed the standard deduction.

Also ironically, everyone refinancing at these low rates is helping the government, since they have less to deduct.

It will still be less out of pocket for them, though. The amount you save in not paying extra interest exceeds the amount you save by having a larger deduction on tax day.

Unless maybe there's some edge case where by having a smaller deduction they end up in a higher tax bracket that results in them actually spending more money with a lower interest rate.

[strife]

To me, home ownership is a no brainer. There are so many tax incentives (mortgage interest and property tax are HUGE deductions on your income tax) and your "rent" never changes if you have a fixed mortgage whereas renting costs adjust up with inflation.

me as well. I got married at 21 and moved out of my parents house and rented for 1 year, just to get through a year of paying my own way, then bought once my 1 year of rent was done.

Some people say not to buy a house as an investment, but I wholeheartedly disagree... IMO, renting is for people with inconsistent income or not staying in one place for a while. Renting is just throwing $ down the drain.

[Grieve]

I'm betting they'll grandfather in the deductions, if they ever remove them. Otherwise I see it causing Housing Crisis #2 as more people get forced to foreclose due to effectively higher taxes.

I think that's a little extreme, although I'm sure housing industry lobbyists would agree.

Maybe if the vast majority of homeowners are married, filing jointly on a modest house or an old loan. If you're filing singly or if you have a newer loan or if it's just a large loan then your mortgage interest deduction alone will exceed the standard deduction.

That's what I thought too, but then you and I both live in Maryland, which last time I checked was the richest state in the US (in terms of average income). If you live somewhere with lower house prices, it's probably less significant. And I'd bet the vast majority of homeowners ARE married with kids - I'm pretty sure you're much more likely to be renting if you are single.

[Donions]

Renting is just throwing $ down the drain.

Bingo. I had my son at 19, and we moved out. At that point, we were paying $1750 a month for rent, WITHOUT utilities. Of course we went broke. We had to move back into my parents, and my Dad is pretty conservative with my money, so he was in the same mindset that renting is just pissing away money.

[Kakarat]

Renting is just throwing $ down the drain.

Bingo. I had my son at 19, and we moved out. At that point, we were paying $1750 a month for rent, WITHOUT utilities. Of course we went broke. We had to move back into my parents, and my Dad is pretty conservative with my money, so he was in the same mindset that renting is just pissing away money.

On the other hand... if you owned that apartment, you would be laughing...

I am planning to rent my basement rooms out when they are completed.