re: Mortgage interest deduction what am I missing

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So really even if you have 13k mortgage deduction it really should only be looked at as a $400 because you would get 12.6 for just living. Am I wrong in my thinking here?

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In insolation, you can think of every deduction that way - you want to look at deductions in the aggregate. Now, I'm not in favor of seeking out deductions, because those are normally at a net cost. But, if you are engaging in activity that results in tax deductions, more power to you. Credits on the other hand, generally afford the most benefit and might be worth seeking out in certain circumstances.

However, to your point - if your ONLY deduction is a $13k mortgage interest, your analysis is correct that you are only yielding a $400 deduction because if you rented (or owned outright) you would get the $12,600.