Misconception Renting Is Wasting Money

Misconception: Renting is for Suckers – [InvestorGeeks] Because personal mortgage interest is deductible on your taxes, your overall tax burden is minimized at the end of the year. Because most of the interest in a mortgage is paid at the beginning of loan, your first year you would receive the greatest benefit. For a typical mortgage on a $125,000 house at today’s interest rates, you’d be spending about $7,400 on interest for the first year (it drops to $7300 in year 2). Of the deductible amount, the standard deduction will chop off a good hunk of that right away, so you’d be saving maybe an extra $1,200 on your taxes, and that’s for only the first year! It’s money, but nothing to write home about, in my opinion. In either case, I don’t believe you should spend more money to have a bigger deduction…