what percentage of the interest you pay on your mortgage and property taxes do you actually get back from Uncle Sam?
25%, 50%, all of it?
TIA
Whatever your tax bracket happens to be. For most people... its around 15-20%.
This is the easy way to look at it. You pay mortgage interest and taxes with gross income.
So lets say your household makes 100k a year gross. You have 8k in property taxes and about 15k of mortgage interest a year. That gets paid with gross income... so after you pay these two... you are actually making about 77k a year and thats what you are taxed on.
So in the end... you are lowering the amount of tax you owe to the government because you are lowering your taxable income.
This is why all the calculators take gross salary.
thank you so much for explaining that in a way this dummy can understand
KarAnthony
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Re: Top things to know before buying a house
So if we make $130,000 a year 2.5 times that would mean we can only afford a $325,000 house?? If that's correct than I am really depressed!
Mrs. dleeny
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Re: Top things to know before buying a house
Posted by KarAnthony
So if we make $130,000 a year 2.5 times that would mean we can only afford a $325,000 house?? If that's correct than I am really depressed!
that's why a lot of people around here either rent, buy something that puts them in debt up to their eyeballs or leave LI.
so sad! $130K combined household income is well above the average! it's disgusting that people who make that much are priced out of this market!
KarAnthony
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Re: Top things to know before buying a house
Posted by dleeny
Posted by KarAnthony
So if we make $130,000 a year 2.5 times that would mean we can only afford a $325,000 house?? If that's correct than I am really depressed!
that's why a lot of people around here either rent, buy something that puts them in debt up to their eyeballs or leave LI.
so sad! $130K combined household income is well above the average! it's disgusting that people who make that much are priced out of this market!
Thank you at least I didn't think I was going nuts. I feel like if we don't pull home $500,000 a year we are conisdered low income by housing standards. It is so insulting!
