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follow tovarichpeter 2017 Nov 6, 1:31pm
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In effect, mortgage interest is subsidized, meaning you end up paying a lower effective interest rate. A 3.75 percent mortgage becomes approximately a 2.8 percent mortgage, and there are a lot more houses you can afford with a 2.8 percent mortgage. That's the point. The tax code is designed to incentivize people to buy houses. Not just any houses, but bigger, more extravagant houses -- built by homebuilders. We have unintentionally designed a tax code whose intent is to drive people into debt to buy houses, making the economy more fragile.
Your debt is your creditors' wealth. When you are in debt, you are forced into labor for their enjoyment.
Your debt is your creditors' wealth. When you are in debt, you are forced into labor for their enjoyment. That's all there is to it.
Going at 3.75% debt to get a 6% rent-ability on your house make sense for many.