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Mortgage Interest Deductibility Not That Great

Foobarista [3] made an excellent point in my Devil’s Advocate post titled “Rent Forever, Don’t Buy A Home [4] that I felt was worth repeating:

The other thing about the mortgage interest deduction is you have to itemize to get it. Given that the standard deduction is quite high now, $10500 for married, filing jointly, only the amount of your itemized deductions above $10500 is actually a “win”. If you have, say, $12000 in mortgage interest and pay $4000 in property taxes, the “tax free” part of your mortgage is really only $5500, not $12000.

I lot of folks look to buy a home in part because of the great benefit of mortgage interest deductibility, but they fail to realize that you need to pay a lot more in interest and taxes than the standard deduction in order to come out ahead if you plan on getting married (and if you bought a home for that particular reason, which is probably a mistake in the first place). Just something to chew on… anyone have any thoughts? I’m surprised I hadn’t heard this mentioned earlier by anyone, probably because everyone I talk to on a regular basis is single, but I would think that it would’ve at least made its way into a mainstream article or something.