Yep, mortgage interest is tax deductible on your personal income taxes.  Compare that with credit cards, auto loans, RV loans, and even personal loans and the advantage still goes to the mortgage loan.  Why would you pay 18% interest on credit cards that are not tax deductible, when you can pay as little as 4-5% on mortgage loans which are tax deductible?

The cool thing about mortgages is that the government wants you to own property, and therefore, they are willing to give you a tax deduction to do so.

Why do they want you to own property?  Because the economy keeps churning when homes continuously change hands.  This keeps the mortgage market going and it keeps things from collapsing.  When you get into the current recession type scenario, sellers don't want to sell at such low prices because they feel the economy will turn around for the better...they are optimistic.  Buyers don't want to buy because they think the economy will go lower and result in even better deals...they to are optimistic.  This creates stagnation and with stagnation comes a lack of volatility (highs and lows).   The volatility creates the movement that makes our money market system move.

So, when it comes to mortgages, go ahead and get one if you want to save some money on your personal income taxes.  You could deduct as much as $0.35 on every $1.00 you spend on your mortgage interest payments.  That means you're actually paying 3.9% on a 6% mortgage loan.

For more info, check out my outside blog at http://www.mortgage-wealth.com.