Mortgage Interest

btden182 · #1 (**permalink**) 11-04-2009, 11:26 PM

I understand that mortgage interest is the interest the lender receives for lending money to the borrower to pay his mortgage. If a person doesn't need to borrow money to pay his mortgage does that person not pay mortgage interest?

littleroc02us · #2 (**permalink**) 11-05-2009, 05:17 PM

Quote:

Originally Posted by btden182

I understand that mortgage interest is the interest the lender receives for lending money to the borrower to pay his mortgage. If a person doesn't need to borrow money to pay his mortgage does that person not pay mortgage interest?

That is a great question. If you paid cash for a house you wouldn't have to pay anyone interest much less the bank. The bank wants you to lend money from them so they can earn interest.

sussanesylvia · #3 (**permalink**) 05-26-2010, 07:14 AM

This is a great question indeed. Can anyone explain about this in detail.

Thanks

Dragana Clelia · #4 (**permalink**) 06-30-2010, 02:50 AM

A home mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the interest paid on the loan which is secured.

Sponsors