News for hackers. Stuff that matters.

A comment on Why You Should Never Buy a Home Again. Parent comment

Re:Why You Should Never Buy a Home Again by ootachi on Saturday March 19, 2011 @01:46PM (#2344205)
But surely the interest makes up for this. It wouldn't make financial sense for the lender otherwise; why lend money to homeowners if it won't beat inflation than, say, invest it in the stock market?
[ Parent | on HN ]
Re:Why You Should Never Buy a Home Again by ericb on Saturday March 19, 2011 @02:06PM (#2344256)
In the US, the interest is tax deductible, so if you have earnings to match against that, the effective interest rate to the buyer is only 2/3rds of the nominal rate on the mortgage.
[ Parent | on HN ]
Re:Why You Should Never Buy a Home Again by ultrasaurus on Saturday March 19, 2011 @03:04PM (#2344398)
So then wouldn't the buy/rent decision depend on your income tax rate?
[ Parent | on HN ]
Re:Why You Should Never Buy a Home Again by rhettg on Saturday March 19, 2011 @02:43PM (#2344348)
If recent history of the mortgage market tells us anything, it's that lenders are not too concerned with making financial sense.
[ Parent | on HN ]