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View Diary: Mortgage Interest Deduction? [With Poll] (55 comments)

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  •  I suspect diarist is still eligible,but does (5+ / 0-)

    not gain by itemizing deductions, and instead just takes the standard.  ( which includes an allowance for housing costs).

    •  standard deduction is ~12k, married joint filing (2+ / 0-)
      Recommended by:
      malibu1964, Odysseus

      monthly payments would have to be very low, or the mortgage would have to very mature, to go under that.  A mortgage of 200k or more would probably put you over the standard deduction.  Median home price is around 220k, so with a 10% down payment, one is right at the cut-point.

      "the good guys play to stun. the death eaters play to kill." --jlms qkw

      by bubbanomics on Fri Dec 07, 2012 at 10:35:37 AM PST

      [ Parent ]

      •  From diary (2+ / 0-)
        Recommended by:
        bubbanomics, Odysseus
        My wife and I scrimped and saved (eating a LOT of rice and beans) to put together a 20% down payment on a house that we could afford.  We paid up front another couple points to drop the interest down even more -
        So, assuming really low deductions in other categories, it seems like the #'s could work out.
        •  indeed. (4+ / 0-)

          it is certainly possible with today's low interest rates to get a house in many areas of the country and be unable to itemize.

          "the good guys play to stun. the death eaters play to kill." --jlms qkw

          by bubbanomics on Fri Dec 07, 2012 at 10:42:46 AM PST

          [ Parent ]

          •  We just refinanced (3+ / 0-)
            Recommended by:
            bubbanomics, tardis10, Odysseus

            again--got it down to a 15 year term. Rate is so low that next year it won't be worth it to us to take the deduction anymore--as it was we were just over the standard anyway because of charitable deductions and taxes.

            Our mortgage interest went from almost 9 grand a year to about 5. So standard deduction it will most likely be!

            But that's not to say I'm in favor of killing the deduction...

            "And I'm talkin' in the fan, Orange Crush is in my hand, with the Star Telegram."--The Reivers

            by malibu1964 on Fri Dec 07, 2012 at 11:21:59 AM PST

            [ Parent ]

          •  And since real estate and state income taxes (2+ / 0-)
            Recommended by:
            bubbanomics, Odysseus

            are also itemized deductions, if their real estate taxes were low, and they lived in a state without a state income tax (like Texas), they might not have enough deductions to itemize.

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