According to the National Association of Realtors people buy houses because they get a mortgage interest tax deduction.
It is hard for me to see the American Dream of being about taxes especially when we consider that owning a home doesn’t always result in a tax break.
People that think they are getting the mortgage interest tax deduction often are not getting it. To get the deduction a tax payer has to itemize. Those who itemize do so because their total deductions are higher than the standard deduction.
The average savings is $1,918 across all incomes, those who earn less than $75,000 per year typically save $800 or less each year by deducting their mortgage interest.
The mortgage interest tax deduction alone probably isn’t a good reason for a person of average income to buy the average priced St. Paul home. The good news is there are plenty of other great reasons for buying a home.
Often people who buy homes do so because they want a place to live and they consider it an investment that could go up in value. It is even possible to buy a home and rent it out so that someone else pays your mortgage.