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2016 Postmortem
In reply to the discussion: How much does the Mortgage interest deduction really save us? [View all]Texin
(2,585 posts)34. With mortgage interest at all time lows, it doesn't amount to a lot; however....
historically and statistically it's probably safe to assume that mortgage interest will increase over time - and maybe even precipitately when the economy begins to come back. This deduction, along with deductions for state and local property and personal taxes, are about the only significant deductions that true middle income earners can avail themselves to. It's an incentive, albeit not that great a one, for first-time homebuyers to get into ownership. The wealthy don't benefit that much by it because it's capped at a certain level (can't recall the amount off the top of my head), but it's way below that which average wealthy buyers would pay for a residential investment.
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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