Myth #1: The mortgage deduction is just for rich people.
- The mortgage interest deduction helps mostly middle- and lower-income families.
- 65% of families who use it earn less than $100,000 per year.
- 91% earn less than $200,000 per year (that’s where most economists draw the line between rich and middle-class).
- Only 9% earn more than $200,000 per year.
This myth may have arisen because of a related fact: If you buy a house, you’re much more likely to accumulate wealth by the end of your life. Home owners have an average net worth of $200,000, while the average renter’s net worth is $5,000, according to the Federal Reserve’s Survey of Consumer Finances.