[coolcash2005]

I read part of the IRS Pub 936, but I think I'm missing something. As I (briefly) read it, as long as the value of the mortgage is less than $1,000,000 (married filing jointly) and it is used to buy my house, then my interest is fully deductible?So say I have a 30-year mortgage for $351,500 at a 4.5% interest rate. As I calculate it, I'll be paying $15,701.50 in interest for the first year. Would that be fully deductible since the Home Acquisition Debt limit doesn't apply to me? Seems like a lot to be able to deduct, so I assume I'm missing something.

[Jetheller]

You are correct, you are not missing anything, you can deduct the entire thing from your taxes providing this is your primary residence.I deduct about that a year.