Mortgage Interest
 

On the news tonight they said that the federal government is thinking of taking away the Mortguage interest deduction. I think this would hurt alot of the middle class.

Mortgage interest deduction is worth $84 billion a year nationwide. It certainly has enhanced home ownership! A strong reason to keep it intact.

I think that IF they propose a change to the mortgage interest deduction it will likely be only for interest over a certain amount, such as 40 to 50K, and perhaps on deductions for mortgage interest on more than the primary residence.

that would be a BIG MISTAKE. Rents would increase along with the cost if home ownership.

And therin lies the problem with any spending cuts or revenue generators. Somebody's ox will be gored. It is the old saying - "Don't tax you and don't tax me, tax the guy behind the tree."

The removal of this deduction has been thrown around for many years now.

Big mistake (IMHO).

But who knows- could be another ruse so we will not feel so bad when other deductions are taken away or other taxes added.

Just like gasoline - the price goes to $4.25 and we are SO relieved when it goes DOWN to $3.50. Even though it came UP from $2.50 !!!!

The mind works in mysterious ways.

I agree they may cap the deduction but one would hope everyone involved would realize much of a change in this deduction would likely hurt the just recovering housing market

I cannot get political about this topic so I won't. I do remember which candidate and party first proposed the elimination of the mortgage interest deduction during the Presidential election but that is beside the point.

Can you imagine the furor which would ensue over the elimination of the mortage interest deduction? The banking industry lobbyists, the real estate association lobbyists, the home builders association lobbyists, and others would have their workers doing overtime work with Congress trying to have this proposal eliminated as it would hurt their industries.

I can see it as a bargaining chip and the possibility of a capped limit on mortgage interest deduction or for those people with a gross income over a certain amount so it will not affect the "working class" as much. I certainly see the possibility of elimination of mortgage interest deduction for any home that is not your principle residence (this would hurt "snowbirds" and landlords).

I very much doubt a deduction for mortgage interest will be totally eliminated BUT, Is a mortgage loan above $500K a need or luxury?? With minor geograpic locations (ie Calif or other major metro areas), I doubt very much it is a need especially a need the governement should subsidize. They may even lower the deductible limit for interest to only conventional mortgage loans and exclude JUMBO loans ......is $417K with the exception of high cost areas $625K. I also think second home mortgage interest deductions could be vunerable to the choping block....which may effect people here in TV.

BTW A Jumbo loan in the United States, is a mortgage loan in an amount above conventional conforming loan limits. This standard is set by the two government-sponsored enterprises Fannie Mae and Freddie Mac, and sets the limit on the maximum value of any individual mortgage they will purchase from a lender

I know that many Villages residents that I have talked to over the years have second homes up North. Could be a major issue for a lot of part timers.