My $.02, since you can't deduct 100% of interest, it probably never makes economic sense to borrow just so you can deduct a % of the interest you pay. Some people are advised to have debts for college loan planning reasons. Other advisors believe that it is smart for seniors and those nearing retirement to have a mortgage instead of paying it off, since it may be difficult for them to borrow if they need the $$$ in the future.
(Of course there is always the reverse mortgage but we all know how expensive the RM can be, and that the borrowers may not be able to stay in the home later triggering a sale, loss of principle, and future housing issues,) |