Prices are down and interest rates are low. There was a time when mortgage interest was a good thing for tax purposes because you can deduct it. Now, the itemized amount is like $11,000+ for married jointy. If one gets a 170K loan at 3.5%, most likely there won't be enough interest to help out for tax purposes.

Don't check my math cause I know it may be off, but you see my question right?

Am I missing something in this logic?

 

Never load up on a mortgage because you are looking forward to a tax deduction. The whole buy as much house as you can afford to get a big deduction is just something realtors and bankers tell you because they work on commission.

Giving the bank $10,000-$20,000 a year in interest in hopes of getting back ~$3,000-$6,000 from the IRS does not compute.

I'm not saying it is bad to get a mortgage, you just need to have other reasons for getting one.
BTW, you are correct that because rates are low that you might not get helped out by itemizing. Look on the bright side, no tax deduction but you are giving the bank a heck of a lot less money.