You might recall that we posted earlier this year about the Mortgage Interest Deduction and how the current Administration is trying to change this tax deduction that has been in place for over 80 years. Well, as you can imagine, this has stirred up some strong feelings from homeowners. In a recent opinion poll over at HousingPredictor.com, 53% of homeowners said they want Congress to leave the MID alone [source: IBT].
The National Association of REALTORS is working diligently to get Congress to change their minds about removing this major benefit to homeowners. To see their progress in defending the MID, click here.
Why does it matter? Because if someone buys a house for $230,000, they could potentially have a mortgage payment of $940 per month. If the MID goes away, that buyer would lose a tax break worth almost $3,500 in the first year alone. That means it would cost an extra $300 per month to own it.* Many would consider renting instead.
The MID is important, and we want it to stay in place for the sake of home ownership and housing affordability.