If you had a custom home builder make you a new home, you likely have some level of mortgage debt to pay off. In fact, this is the case for the majority of homeowners in the United States. People simply don’t have enough to pay for a house in its entirety.
Houses are just plain too expensive. Now the question is, what do you do with this home mortgage. According to TikTok influencers, you should keep this debt and use it to get itemized deductions off your taxes. However, in this video you will learn why this is a horrible idea.
The issue with avoiding paying off a mortgage for tax deductions is that it hardly saves you money. In fact, it will not save any money for most people because they take the standard deduction instead. Even if they do use the itemized deduction, it is like trading a dollar for a quarter. It is much better to pay off the mortgage as soon as possible so that you don’t have to keep making those payments. There are plenty of other ways to get tax deductions instead.