go4gr8

How do you write-off interest paid??

The way I see it..and have calculated, on a 30 year mortgage you're paying double the cost of the house. I'd rather make/save the money in 10 to 15 years and pay for the house in whole.

Keng

It's 1.9% for 36 Months and 2.9% for 60 Months now.

You can write off interest paid on Mortgage and Student Loan.

Mortgage is cheap because there's still 3% inflation every year and typically your salary will go up with the inflation, but your Mortgage payment remains the same. So your Mortgage payment become smaller and smaller portion of your income.

go4gr8

Holy crap that's low!

While the monthly payment remains the same on the house, you're still paying for double the cost.

Keng

Don't just look at the face value on the money. The $1000 in 2038 is not same as $1000 today.

Assuming 3% inflation every year, every $1000 dollar today has value of $2427.26 30 years from now.

Here's a link to get you started, unless you hate finance http://en.wikipedia.org/wiki/Time_value_of_money

GiGGaplease

whoa, so its 1.9% for 36 months? thats like about $650 of interest money you have to pay if you are borrowing 30k...

Kidcane

iTrader: (7)

That is very true and idealy everyone would pay cash for everything and not have to finace at all.........BUT if you do have to borrow money FOR ANYTHING, home, car, credit cards, etc. it is best to do it through a home loan as that is tax deductable. But if you are in the 1% of Americans that never finances anything then you are correct.

MrMichael

You deduct the interest paid on your taxes if it is your primary home.

You have to understand that the goal of a mortgage is not to get one so small that you pay it off. Majority of folks never pay off a mortgage. It is not like a car in any way. A home is an investment, a car is a luxury.

Paying for a house in whole is a waste of money. You could invest that money or use it for something else and get a better return.

Kidcane

iTrader: (7)

Exactly! 8% annuity on a 5.75% tax deductable $100K loan...do the math.

go4gr8

March 18...watch for the rate to go down .75%!

vrb747

I dont think further rate cuts are going to help consumers, especially if you are looking for a mortgage or trying to refinance. Look at mortgage rates, they have climbed since the last cut. The credit markets are frozen and there is a basic lack of trust. When a company like Ambac or MBIA that needs to raise money has an AAA rating and Pfizer has a lower rating, you know those ratings are practically useless.