People keep saying you can write off interest on a mortgage but don't seem to understand what that means...

So let me explain:

Interest is the cost of borrowing money.

For easy numbers, let's say you pay $1,000 in interest on your mortgage and earn $50,000 in the year.

You may be able to take that $1,000 you paid in interest OFF THE TOP OF YOUR TAXABLE INCOME.

Let's say you owe 20% tax on income above $40k.

You would save 20% of the amount you can write off... not the whole $1,000!

You would now owe taxes on $49,000 instead of $50,000.

You STILL spent an extra $800 in interest that YOU WON'T GET BACK.

Don't pay interest just because you think "it's a write off" - that's stupid.