Mortgage Interest for Homeowners

Ahhh, it's my favorite time of year, tax season. As I become more seasoned as a Realtor, I am coming to the realization that taxes are inevitable, and it's up to us to take advantage of every opportunity that we can. As a homeowner, I rely on deducting my mortgage interest each year. It takes a big chunk off of my tax burden, and it is one of the reasons I own a home today. For those of you who are self-employed, you can understand that we need all the deductions we can get! Self-employed or not, mortgage interest deduction is a big part of your tax return.



Some lawmakers are threatening to take away mortgage interest deduction. This talk must be stopped. It will affect us all adversely. Cutting out MID will most certainly lower property values that are already at lows that homeowners are struggling to cope with. Even if only the top level mortgages lose MID, it will most certainly have a trickle down affect on all housing markets. Each market segment is affected by all market segments and vice versa. In terms of property values, at a minimum, homes would lose in value what is equal to the present value of the tax burden being taken away. That value is currently estimated at $90-130 Billion! Losing that much in consumer dollars would be catastrophic to an already fragile economy. I will keep you all in the loop with further developments, but let's fight to keep mortgage interest deduction.



Oh By the way... I'm never too busy for any of your referrals!