How much interest do you really pay?
Interest and Tax Deductions
If you itemize deductions on your federal income tax returns, you may be able to deduct all the interest you pay on your mortgage loan. (We are not tax professionals. Please consult one for your own situation.) I have created a table that shows actual interest rates you may be paying on your mortgage and the effective interest rate based on your tax bracket. For example, you have a 7% mortgage rate and your tax bracket is 15%, then your effective rate is actually 6% after interest deductions.