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2016 Postmortem
In reply to the discussion: How much does the Mortgage interest deduction really save us? [View all]NoOneMan
(4,795 posts)12. In a way, you are almost suggesting that the deduction increases demand
Had there never been a deduction, demand would be lower at these prices (you wouldn't have bought), suggesting the prices would need to meet demand. So in all, the deduction is probably saving you nothing, as the market has adjusted to compensate for it.
Homes are being priced as high as the market can bear, such that they remain affordable. This "affordability" measure then just seems to create some excess amount of money that never materializes for the buyer; what does materialize is higher interest payments to banks that the government subsidizes.
Does revoking it cause harm now that the market has adjusted? Absolutely.
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Depends on if you think promoting affordability increases housing demand, and thereby prices
NoOneMan
Nov 2012
#3
For people who are unable to refinance at a low rate because they have lost their jobs,
djean111
Nov 2012
#8
Considering I deduction 4 to 5 times the amount of the standard single tax deduction of $5800,
sinkingfeeling
Nov 2012
#9
part of what pisses me off about this discussion is that i never would have bought my house
unblock
Nov 2012
#11
in my case, I no longer have a mortgage so it doesn't save me anything now. But it used to.
Filibuster Harry
Nov 2012
#13
sounds good for leveling the playing field but c'mon; if my tax rate is
Filibuster Harry
Dec 2012
#38
I think your example is self serving and restrictive and does not ask the right question. I for one
OhioworkingDem
Nov 2012
#21
Medical expenses you can deduct only the expenses that exceed 10% of your AGI
question everything
Nov 2012
#24
I Didn't Even Look At The Numbers. Most Everybody Likes It. Taking It Away Is A Political LOSER
DemocratSinceBirth
Dec 2012
#32
Don't think it is worth as much as folks think. But it's not going away. Everyone wants a loophole.
Hoyt
Dec 2012
#33
If you rent you do not have to pay property taxes or carry insurance on the dwelling itself.
djean111
Dec 2012
#43
The interest deduction helps offset the lack of equity paid off in the opening years..
smorkingapple
Dec 2012
#42
At today's interest rates, the deduction may not make that much difference for families
JDPriestly
Dec 2012
#51