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TheMansterMD t1_jaco3cp wrote

You don’t “save” money. Example 450,000 home at @6.7% would be 2303 with 20% down. You will be paying around 23k in interest payments a year. There is a cap of 10k reduction due to the salt tax rule, so that would assume, your income would go from 600000 to 590000, saving you a ~ $3,700 plus minus a few hundred in tax liability. Rough estimation, but your spending 23k in order to save ~ 4K.

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monkey_of_the_dude t1_jacr6ci wrote

Mortgage interest isn't SALT, but it does have different rules that can limit it depending on when the mortgage was incurred and how much the mortgage is for. You would be able to deduct all of the interest on a $450k ( $360k with the 20% down) mortgage.

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TheMansterMD t1_jacsf74 wrote

So, save 8 to 10k in taxes, after paying 23k in interest

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