Originally Posted by Verdell

Not sure why you only mentioned 1/2 of the tax equation when comparing mortgage to savings account.

If you had, say, a 4% mortgage and a savings account that pays 4% interest, the tax implications essentially cancel either other out. Sure you deduct the mortgage interest from your taxes, but then you add the 1099-INT tax on the savings interest right back in.

Even then, you still have to get "over the hump" of the standard deduction to make a plan based on itemizing your mortgage interest worthwhile.