What is the reduction in feedral and California state tax yearly from having a new mortgage with?

Question

$23,100 annual mortgage interest on a $90,000 annual salary?

Answer 1

Depending on your filing status, you are in either the 28% or more likely the 25% tax bracket. Mortgage interest is fully deductible unless your total mortgage is more than $1,000,000. Your tax savings would be 25% of the amount your itemized deductions exceed the standard deduction for your filing status. At best, your taxes would be reduced by $5775. The mortgage interest you list is 25% of your gross income. Taxes aside, you should seriously consider if you can really afford the house.