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Is it a smart idea to take a larger mortgage just to gain the extra tax deduction? Here's the scenario:

My wife and I have no children, and have no plans for them. We bought our home 1.5 years ago with 30% down for the lower monthly payments. Other than state and personal property taxes, contributions, mortgage interest is the only other thing we can claim on the Schedule A.

Together we have a $120k+ gross income, use IRAs and 401ks to the max, and still are going to get a hefty tax bill this year. Would it be better for us to "buy up" and only put 20% down (no pmi here) for the tax deduction? Any other ideas? Thanks.
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