Inputs? And how much is tax deductable?
The tax bill means you’re likely not going to get to deduct much of your mortgage.
Isn’t the limit 750k?
Nope not true. You only can deduct first 750k of mortgage interest. Aka treat deduction based on if mortgage was 750k and not your actual value. TurboTax does this for you. Cali state tax let's you use full mortgage value. Redfin estimate very accurate. Only.thinv is that their home insurance estimate is off. This home value in the bay could "likely" be insured for 40-80$/month. You also can get 3.5% 30 year fixed financing for BoA with 20% down.
Depends on how much you put down and your interest rate. I pay around 4.5K/month on a 1.2M house at 3.8%. You can deduct all of the mortgage interest and only 10K in state taxes.
How much did u put down?
20%
1.1 mil in Sunnyvale. no HOA. And SFH. With 20% down & 3.5% mortgage interest. 5112$/month total. ~4k mortgage + 1.1k prop tax + 50 home insurance. Prop tax isn't likely deductable as you are probably already Maxing out SALT deduction. Mortgage interest is. For 750k mortgage year 1 you'd pay in interest, not including mortgage points or.closing costs, ~26. Assuming 63% tax rate thatd mean you pay 800$/month less in taxes (26k * .37 / 12) So now out of pocket is closer to 4.3k. However your principal is money you'll get back. So in regard to money spent that you don't get back. That's really just prop tax + interest. Which is 26k/12 + 1.1k = 3.26k/month. If you rented for 3.26k/month you'd kind of ish break even. (not really. But let's keep.math simple). Edit: minus tax deduction it's ~2.4k/month
You forgot to reduce standard deduction, so 26-14 = 12. At ~37% tax rate, the tax saving is only 4k/yr
Use a calculator that takes into account your income and filing status https://chalkyourfuture.com/home/mortgage-calculator-with-taxes/
If you don’t buy a home you already get $24k standard deduction. Plus you already get $10k state tax deduction. Only mortgage interest above $14k gets you any tax benefit. So for a $750k mortgage at 3% you get $22.5k interest. So $8.5k of this interest is tax deductible. At a tax rate of 35% you get $3k tax savings on your home
But you also can now leverage itemized deductions as you have enough $$& to not do standard deduction. Your Goodwill is now tax deductible....etc You cab easily up that by 3-5k additional tax deduction.
That is dependent on individual tax situation. Every $1k you donate gets you additional $350. OP may be donating $1k or $10k and can make the appropriate calculation. But that is not direct saving as you do have give the money to charity to get the deduction. Those who don’t get this deduction when doing standard deduction can just choose to give 35% less to the charities and get the same net cost
I am paying $3100 mortgage + $1000 property tax per month. My tax saving will be around $750 per month. So its around $3400. My down payment is 30%
Mine is 5400 for 1 mil loan including taxes,
Use an online calculator