<prompt> Human: My fiance and I have been house hunting for 3-4 months and have seen 30 preowned homes. We have started looking into new construction and have determined that for a 320k home, our monthly payment including PMI, taxes, and insurance would be 2155. We are currently renting at 1526 per month. My fiance has her heart set on a preowned home that is updated and has a lot of what we are looking for, however I am a little skeptical about some renovations it has had due to previous owners not winterizing when they walked away from it they were upside down. The new owners have been in for 3 years, did the repairs, etc. and havent had any problems. They are asking 287k, which comes out to 1926 per month. Ultimately, I am trying to persuade my fiance that the 255 dollar difference is worth it for new construction. What will the mortgage interest reduction make these payments more realistically? Our incomes are 52k and 90k respectively. We both have 740 credit and no credit card debt. These monthly payments were provided by our lender who we have been working with.  <response>: What will the mortgage interest reduction make these payments more realistically?The mortgage interest deduction will have no effect on how much you pay per month, because the mortgage interest deduction is claimed when you file your taxes. You can roughly figure out how much you will be paying in interest by looking at an amortization schedule and multiplying the amount by your marginal tax rate to see how much you save in taxes. 