I'm trying to figure out if I could save more money by renting instead of paying a mortgage. My house is under water and I'm thinking about doing a short sale. My mortgage payments are high and I'm retiring in 6 years and will never own the condo I'm living in that I purchased 3 years ago. I do get a great tax deduction from the mortgage interest, but I'm not able to save any money. Also, are there any tax consequences when someone does a short sale? My salary is over $90K annually, without mortgage interest to deduct, how much would I be paying in taxes if I contribute the max to my 401K?