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If they removed the mortgage interest deduction from the tax code what would be the incentive to buy a house? How many thousands of jobs would this one act eliminate?
I don't know anyone personally who buys a home solely for the mortgage interest deduction. Maybe investors?
I buy home because I want to live in a home and not pay rent and build equity. The mortgage deduction, while nice, isn't the be all to end all for me. Just my personal take of course.
If you're buying a home and the mortgage interest deduction is what keeps the Hamburger Helper on your table each night, then maybe you're not financially ready to buy a home?
Well it's not a $1 for $1 deduction like some think.
That would be the last deduction that we have for interest payments.
I remember when any interest you paid was deductible..CC interest, car loan interest, personal loan interest. They removed all that and just left mortgage interest deduction. Now even that will be gone or whittled down to nothing.
Well it's not a $1 for $1 deduction like some think.
That would be the last deduction that we have for interest payments.
I remember when any interest you paid was deductible..CC interest, car loan interest, personal loan interest. They removed all that and just left mortgage interest deduction. Now even that will be gone or whittled down to nothing.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I still would consider home ownership to be a big advantage over putting money down the rental pit, even without the deduction, and less or no equity from appreciation. Still, the deduction helps people that might otherwise not be able to afford to buy. I think it would have a big effect on
the economy, with many realtors and related jobs going away, and would drive up rents to the point where we would see more multiple family homes (shared rent). I think it would also be the political kiss of death for anyone
that proposes or votes for it.
I think it is undeniable that removing the mortgage interest deduction will hurt the housing industry. The question is how much. As one who has done my own taxes for a number of years, I know that the mort int ded is what usually tips the balance between itemizing and not itemizing, so it is not just the loss of that deduction. While it is true that the deduction is not (and should not be) the main reason for deciding to purchase a house, it is difficult to see the advantage of doing something that will hurt an industry that is vital to our economy and by all accounts is in deep trouble. Recent data was that this years real estate sales were on track for being even worse than last years. Do we really want to add another detriment to RE sales?
I don't know anyone personally who buys a home solely for the mortgage interest deduction. Maybe investors?
I buy home because I want to live in a home and not pay rent and build equity. The mortgage deduction, while nice, isn't the be all to end all for me. Just my personal take of course.
If you're buying a home and the mortgage interest deduction is what keeps the Hamburger Helper on your table each night, then maybe you're not financially ready to buy a home?
The mortgage interest deduction is the difference in being able to afford a home for many people.
Home ownership is part of the American Dream. Isn't this why Congress tinkered with the system to enable low income people to be part of it?
Yes and it blew up in their faces so they had to bail out the financial system.
Now that the banks are earning again they've lowered the standards even worse than before by sending notices to banks that they shouldn't discriminate because someone has no income and they should take welfare program entitlement payments into account for qualifying.
Yes and it blew up in their faces so they had to bail out the financial system.
Now that the banks are earning again they've lowered the standards even worse than before by sending notices to banks that they shouldn't discriminate because someone has no income and they should take welfare program entitlement payments into account for qualifying.
Into account to what, their $50,000 a year salary on top of their welfare payments? Welfare payments wouldn't qualify for a car loan let alone a house.
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