I'm assuming the interest payments would be taxed under the FairTax. And the principle of a new home purchase would be taxed as well. But if I already own a home, and the FairTax is implemented, I would not be charged sales tax on my principle payment. Also, the principle on a used home purchase would not be subject to the FairTax.
I would rather pay tax on the interest than on the principle.
I would rather pay tax on the interest than on the principle.Why? On a 30 year loan you pay more on the interest than the priciple.