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Personal Finance (Not Investing) • Purchase Second Home with Cash or Mortgage?

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Pay cash. A 30 year mortgage on a $500K home at 7% interest with 20% down payment will cost you $558K in interest, or $958K total, if paid according to the original amortization schedule.
It would, but the tax benefit would be minimal given that the standard deduction is already close to $30k and the itemized deductions with the added interest would not be much higher than that.
This is changing in a couple years when many TCJA provisions expire.

Statistics: Posted by AnEngineer — Thu May 09, 2024 8:52 am — Replies 12 — Views 865



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