Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Well it's no secret they have to do SOMETHING - and by "something", I mean they have to do alot to offset the deficit... Considering just about anyone with equity and a decent FICO has refi'd into the insanely low interest rates available, how serious would it be to repeal (or reduce or cap) the tax write off?
I can't see them killling the mortgage tax deduction. Can you imagine the backlash for every politician that supported that?
Had the thought about going to the conference, at least on Tuesday, driving down from NYC. 2nd thought - I might be kicked out for voicing my opinion.
Mikey - The mortgage tax deduction will not be killed.
On regular mortgages regarding of the amortization- typically after five years, is when principle starts to be paid more than the interest. Every year after - less and less interest is charged to the loan.
Secondly - with these low interest rates. The Fed is lowering rates for a reason, in addition to lower the discount window requirement for banks you and I spoke about on another post last week. They are trying to flood the economy with money to give it a kick start.
Adding to "manderly" what she says above - politician's would be voted out of their positions......
Had the thought about going to the conference, at least on Tuesday, driving down from NYC. 2nd thought - I might be kicked out for voicing my opinion.
Mikey - The mortgage tax deduction will not be killed.
On regular mortgages regarding of the amortization- typically after five years, is when principle starts to be paid more than the interest. Every year after - less and less interest is charged to the loan.
Secondly - with these low interest rates. The Fed is lowering rates for a reason, in addition to lower the discount window requirement for banks you and I spoke about on another post last week. They are trying to flood the economy with money to give it a kick start.
Adding to "manderly" what she says above - politician's would be voted out of their positions......
I wasn't necessarily thinking "killed", more like reduced or capped... But, I hear what you're saying.
The Fed's policy is not working and they're out of options - more "flooding" is just pushing more risk for hyperinflation (think Zimbabwe). Have you been watching the endless POMO each week that the Fed is backdoor pumping the stock market with? It's completely Ponzi now as the market stays green while for 23 straight weeks there's been net outflows OUT. The weekly billions in POMO is propping the entire S&P and is complete election hype.
The worst part is that word is getting out about all these "cash rich" and "reserve laden" companies - they're holding all that cash offshore.... The multinationals are all doing it and they're now stuck because they would have to pay a huge US tax in order to repatriate the funds and use them here in the US. It's globalization gone wild. I think the worst part is that there's only so much the other central banks will bow down to - trade wars are upon us.
If they didn't intend on eventually killing the mortgage interest deduction, they wouldn't keep floating the idea. Talk and studies are the pre-sell. Next, they'll start to play up how unfair it is to renters. Then, they'll do some type of extortionist either-or-- "either we reduce the mortgage interest deduction or....we raise the retirement age on all you boomers" type thing.
Then reduce, reduce, reduce till poof! It's gone.
They don't introduce the talk unless there's a five-year plan behind it. See one of Obama's earliest town-hall style meetings where a convenient flood of questions from the internet had him-- the President of the United States-- actually mention the topic of legalizing marijuana.
Voters won't stand for it right up until they make it the "only" choice. Then you frog-in-the-boiling-pot the issue:
First, only legal for medical reasons, then only legal in one state, then.....
First, only reducing the deduction x% on homes worth over x, then on lower cost homes, then....
The American Idol loving public won't march the way the French will. Gradual erosion is policy.
NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke said Monday that a federal agency review of foreclosure procedures at the nation's largest mortgage servicers should be completed next month.
"We take violations of proper procedures seriously," Bernanke said in remarks prepared for delivery at a joint conference in Arlington, Va., with the Federal Deposit Insurance Corp. on Wall Street's foreclosure procedures.
"I would like to note that we have been concerned about reported irregularities in foreclosure practices at a number of large financial institutions," Bernanke said. "The federal banking agencies are working together to complete an in-depth review of practices at the largest mortgaging servicing operations."
"We are looking intensively at the firms' policies, procedures and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures," he said.
Robo-signing: Just the start of bigger problems
Bernanke also highlighted the precarious state of the housing market.
"Now, more than 20% of borrowers owe more than their home is worth and an additional 33% have equity cushions of 10% or less, putting them at risk should house prices decline much further," he said. "With housing markets still weak, high levels of mortgage distress may well persist for some time to come."
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
