During the first few years of a home mortgage, almost all the payments go for interest on the loan. This high interest is a reason it is better for young people to rent rather than buy.

Question

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The federal government allows homeowners to deduct interest on their mortgage from income, thus reducing their income tax liability. Thus, the fact that almost all of the mortgage payment in the first few years goes to interest means that the homeowner can deduct almost the entire cost of the mortgage payment from his or her taxable income.

During the First Few Years of a Home Mortgage, Almost