With mortgage rates at all time historic lows of around 4% and real inflation rates running at about 2%, then the real cost of borrowing money is virtually zero after taking into account federal and state tax deductions !
For example, someone paying 27% federal tax and 8% Ca state tax (total 35% tax) will be paying a net mortgage interest of just 2.6% before accounting for inflation, and just 0.6% net after the effect of inflation !
Assuming that the borrower chooses a 30 yr fixed loan, and assuming that inflation will likely rise in subsequent years, this really is like getting free money to buy your home !
Dominic Godfrey
Free Termite, Roof, & Property Inspections when you buy your home with us ! www.FreeBuyerBonus.com
Comments(3)