Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,304 contributions
Each person, and their tax situation is different, so it is hard to be specific. This is a bit simplistic, but, you know you can write off the interest on your mortgage. So assume over the course of one year, you pay $15,000 in interest. If you made $75,000 in income, you write off the $15,000, and your taxable income would only be $60,000. What would you pay on $60,000 income? Another way of looking at that is to assume you are in the 20% tax bracket. $15,000 in reduced income would be $3,000 in tax savings.