Homeowner's Tax Myths

Bankrate.com's "5 homeownership tax myth" has great points on why you must be very careful about buying homes: homeownership is way overrated. Don't be fooled into thinking that you'll be "throwing" your money away if you rent. Cost of ownership is much higher than merely monthly mortgage payments. There are maintenance costs [which aren't tax deductible], as well as tax bite if and when there are loses [you can't write it off and if you get any part of your loan forgiven, you'll owe taxes to IRS as the forgiven amount as "gift" income].

So, be very careful before you ever sign up for a "death pledge" [mortgage]. I personally would rather break up my 401k/IRA and pay the IRS penalty rather than get another to-death loans....