Jen Lefforge

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CdnGirl77

CdnGirl77

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No Grifters Needed said:
I'm screenshotting this article here because it's behind a paywall:

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I wanted to let non-Americans know that there are often benefits to not paying off your mortgage in full. They bought that Alpharetta, GA house in 2015 for $475,000. It's now worth $900K. Anyways, with that purchase price and the historically low mortgage rates we had at the time, why pay it off. The rates were so low, you'd be foolish to pay off your mortgage. Keep a high mortgage and invest the difference. There are also tax benefits to keeping a mortgage because the federal gov't allows you to deduct the interest you pay on your mortgage. No mortgage, no income tax deductions.

I don't want to come across as a Jenn supporter at all, but just trying to show you why they would still have a mortgage. US mortgage rates have gone up substantially since then, so people's mileage on the above may now vary.
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I guess I come from a family where my mum stayed home and my dad taught junior high and they paid their mortgage off ASAP here in Canada and I intend to do the same. We don’t get mortgage interest tax write offs and I’d guess that’s a risky feature to bank on unless you can lock in your mortgage rate for more than 10 years. The longest interest rate term here is 5 year fixed. That’s why so many people who bought with low variable rate mortgages are currently fucked. I just can’t wrap my head around keeping debt in the hopes that you get a tax write off for it and don’t owe as much on your taxes as a result.