OP's initial post included a hypothetical interest rate of 5.85%. At that interest rate a single person would clear the standard deduction with a mortgage amount above $221,367 and a married couple would clear the standard deduction with a mortgage amount in excess of $442,735. Assuming a 30% down payment that means a house price of 287k if single or 575k is married. And that is with no other itemizable expenses. When you buy a house you always have additional itemizable expenses like property taxes and assuming you work or spend money you are paying state/local taxes. So an average priced house with OP's interest rate and down payment would be large enough to benefit from the standard deduction if OP is single and a slightly above average priced house would qualify for mortgage interest deductions if OP is married.

The standard deduction for 2022 was $12,950 for single people and $25,900 for married couples. Your total itemized deductions would need to be more than those numbers. The information is available on the irs.gov

Instead of calling people names, perhaps provide some numbers or evidence to show that this is mathematically impossible would be helpful. I have provided the math and links to websites that will do it for you.

I provided you that number further up this chain. I told you the mortgage amount that would be needed for both a single and a married person to hit the itemization threshold with just interest. I have provided every number you have asked for already as well as a link to an amortization calculator. If you believe they are wrong give me the correct number.

Stop moving the goal post, tell me what is wrong with my numbers. Once you have done that I will explain amortization to you. Also the link I provided provides a complete amortization table including a break down of each payment for the full 30 years.

I'll wait for you to provide "correct" numbers.

The numbers I gave you were from an online amortization calculator, I used the one at bankrate.

Here is how I came up with $1.12 for every $1 financed over 30 years at 5.85%:

Put in $100,000 for home price, $0 for down payment, 30 year for loan term, and 5.85% for interest rate. That gives you a loan amount of $100,000, total interest paid of $112,959, and total cost of loan of $212,959. Move the decimal over 5 places to get the cost per dollar of $1.12959 in interest per $1.00 initially financed. I guess I could have rounded to $1.13 instead of truncating to $1.12 to be slightly more accurate?

If you believe they are correct feel free to provide what you believe to be the correct numbers. I have provided actual numbers and my source and showed all my work. You're going to need to do more than just say I'm wrong.

At 5.85% for 30 years you will pay $1.12 in interest over the course of the loan for every $1 borrowed. Of course that is only one of the numbers needed figure out if you should pay cash or not. The other numbers needed include the amount of any tax savings and the amount of any interest or investment income earned on the money over the same time period if you don't pay cash as well as the cost of any additional taxes on the earnings. It is far from a simple math problem when the numbers are close like they are with OP's situation. It is a no brainer with a 3% mortgage to take the loan and with a 10% mortgage to pay cash, OP is near the break even point so their exact personal financial situation could tip it either way.

Yes, it is 750k in loan not 750k in house. That was a stupid mistake on my part, I totally phrased it wrong.

>You are not utilizing the framework of what qualifies answering OP’s question.

I see nothing in my comment that conflicts when OP's initial question. Yes I used 5% instead of 5.85% but that actually shifts the bar lower for how big a mortgage has to be to be able to benefit from the interest deduction on your taxes.

>They are asking about all cash or 30% down.

Correct.

>In either of these, the mortgage deduction wouldn’t apply since it would not reach that threshold.

>Again, it just doesn’t apply mathematically.

OP's initial post included a hypothetical interest rate of 5.85%. At that interest rate a single person would clear the standard deduction with a mortgage amount above $221,367 and a married couple would clear the standard deduction with a mortgage amount in excess of $442,735. Assuming a 30% down payment that means a house price of 287k if single or 575k is married. And that is with no other itemizable expenses. When you buy a house you always have additional itemizable expenses like property taxes and assuming you work or spend money you are paying state/local taxes. So an average priced house with OP's interest rate and down payment would be large enough to benefit from the standard deduction if OP is single and a slightly above average priced house would qualify for mortgage interest deductions if OP is married.

If you disagree with my assessment please let me know where my math is incorrect. When interest rates were lower and houses were cheaper way back in 2020 the vast majority of people couldn't benefit from mortgage deductions. But with higher house prices and higher interest rates, lots of people buying today can.

>the only people mathematically eligible have an ultra jumbo loan (+$1M)

Well that's verifiably false since the limit on the deduction is the first $750k in home purchase.

Here's some actual numbers:

The median home price is currently $428,700 in the US.

Standard deduction for a single person is $12,950 for 2023. If your mortgage rate is 5% you would need to borrow at least $259k to hit $12,950 in interest. But if you are itemizing you also get to add in other stuff like state and local taxes. So an average home bought today would be enough for a single person to come out ahead itemizing simply due to interest rates no longer being like 3%.

For a married couple the standard deduction is doubled so a 5% mortgage would need to be over $518k to clear that hurdle. But again a cheaper house would qualify after taking into account the other itemizable deductions. So a slightly above average house purchase would probably make itemizing the correct choice for a married couple.

Also, 5% is a low rate right now, lots of people are getting 6 or 7 or more making the home loan needed to come out ahead itemizing much lower.

It is deductible for the first 750k of home value loan amount. But with the larger standard deductions and low interest rates most people haven't been able to take advantage of the tax savings the last few years. With interest rates rising more people are getting some tax savings.

Basically the standard deduction is just shy of $13k for a single person or $26k for a married couple. In order to get any savings you need to itemize which only makes sense if your itemized deductions are more than the standard deduction.

edit: mixed up home value and loan amount

There are differences in certain situations.

If you file separately there are a few credits you cannot claim like the earned income tax credit, child and dependent care credit, and some education related credits. So if you would get those credits filing jointly is generally better than separately.

Also to claim medical expenses you need them to be more than 7.5% of agi. If one person has a bunch of medical expenses it might be more than 7.5% of their agi but not of the joint AGI. In that situation jointly might be better.

There are a ton of edge cases where one or the other is better. In most cases it should be the same or very close to the same, but sometimes there are large differences.

Just open a new account. Tell your parents you are in the process of combining finances with your new bf instead of saying it's to get them out of your account. This way they will take less offense. I would open the new account at a different bank to avoid the bank accidentally linking the new account to your parents or your parents sweet talking the bank into doing it behind your back, also a new bank gives you an excuse to not link it by claiming it's too difficult.

Different areas have different ways that it tends to work. Where I live they usually charge security plus 1 full month at move in and then on the first of the next month you pay the prorated amount instead of a full month if you move in mid month. This isn't how every landlord does it around here but most of the big ones do. It's because it's the way they can collect the largest amount legally possible before move in. Where I live they also limit the size of security deposits and won't let landlords collect more than 1 month's rent at move in. So instead of first and last and security, it's just first and security, so they try not to prorate first.

Everywhere has different rules, and different norms and traditions.

Where I live when you move in mid month they usually charge you your security deposit and a full month's rent at move in and then on the first of the next month instead of paying for another full month's rent you just pay a prorated amount based on how many days you lived there in the first month.

It seems counterintuitive since you pay at the beginning of the month it would logically make sense to pay a prorated amount at move in and a full month on the first of the next month. But they do it that way so they have a little more money for the first few weeks just in case you turn out to be a deadbeat.

A coverage investigation means they have reason to believe the person did not have valid coverage at the time of the accident. This could mean there was a lapse in coverage on the policy, or maybe the car wasn't listed on the policy, or it was an excluded driver, or something else. It does not mean it definitely isn't covered, but it means there's a decent chance the person who hit you didn't have valid insurance at the time of the accident. I have seen this when someone made a payment on the last day to avoid cancelation, they just waited until the payment cleared and then paid the claim. I have also seen it where it was decided there was no coverage.

You have a few options. First you could go through your own insurance, but with small damage and high deductibles that probably won't get you too far ahead. But your insurance would subrogate, meaning that would try to collect from the person who hit you or their insurance (if it turns out to be valid). and if they collect, you get your deductible refunded. Subrogation takes a very long time usually, like 6+ months. You could also skip insurance and go straight to small claims court, but winning in court is easy and collecting is difficult. Or you can wait until the coverage investigation is concluded, and decide at that point.

Definitely, KBB is a good place to get a rough idea of value. But I have had cars where I got way more or way less than KBB estimated they were worth.

> You said KBB goes as high as 22k

Actually, OP said new it was 22k. They said they owe 18k and the KBB value is 15k.

>Incorrect, you just need to pay the difference.

Which is what this whole comment chain is saying. If you sell the car for less than you owe than you have to come up with the difference out of pocket so that you can pay the loan in full and transfer ownership to the new owner.

You aren't adding to the conversation, you are correcting people that are correct and you are trying to say the same thing they said but you are doing it in a more confusing manner.

No.

>I ask him what my credit score was, he tells me 723 Experian. I call BS on him, I subscribe to Experian and it’s 793. He says it doesn’t matter

This is the one thing that probably wasn't him playing games. You have like 50 different credit scores, some will be higher and others lower. So you could see a 793 and he see a 723 and both be telling the truth. But a 723 should get you there best rates so when they said it doesn't matter, they were also telling the truth.

Everything else is BS to get a higher interest rate loan sold and get a larger commission. Just get a loan elsewhere and watch as he magically is able to convince the bank to com in at the same rate or a hair lower.