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In reply to the discussion: Mortgage Interest Deduction: Not A Tax Break For The Middle Class [View all]libdem4life
(13,877 posts)39. In a very big way. It reduces the purchasing power of new buyers to buy the current inventory
as the effective payment has increased, so sellers can not sell and pay off their current mortgages or lose a percentage of their initial down payment...whether equity or cash. And many in the high-priced areas, buyers including FHA buyers, were qualified at over 50% to gross income...at least then, don't know about now.
That is the exact description of the last Bubble. It just happened through rate reduction, rather than mortgage interest deduction.
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I tend to agree. If it was a flat deduction, it would be more fair to middle class owners.
NYC_SKP
Nov 2012
#1
While technically true, this answer is missleading. While apartment (or any rental property)
kelly1mm
Nov 2012
#17
Years and years of experience. You would be suprised what people think they know about taxes.nt
kelly1mm
Nov 2012
#40
In the So Cal real estate business for years. Many deals were 3 and 4 legged...called "contingent"
libdem4life
Nov 2012
#31
In a very big way. It reduces the purchasing power of new buyers to buy the current inventory
libdem4life
Nov 2012
#39
I think most middle income folks overvalue the taxes saved through the mortgage deduction.
Hoyt
Nov 2012
#16
let's do some rough math. it's not unreasonable to pay a quarter of your income on mortgage
unblock
Nov 2012
#21
So one has taxable income of $300,000 -- I think they can squeeze out $10,500 in additional taxes.
Hoyt
Nov 2012
#41
you still get the deduction to $500,000 of a home's value - it's not like NO deduction
Lex
Nov 2012
#30
I sold my home this summer because I was underwater and got a great deal to get
beyurslf
Nov 2012
#33
Mortgage deductions in the 8-12% interest days in the 80s-90s real estate bubble were significantly
libdem4life
Nov 2012
#34