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Ignoring Benefits of Tax Deductions

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In the June 27 Your Mortgage column, Jack Guttentag says that the “principal repayment yields a return equal to the interest rate on your loan.”

That completely ignores the benefits of income tax deductions. In a state like California with high income taxes, and for those in higher federal tax brackets, the impact on the analysis is significant.

JOHN STERN

Mar Vista

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