Mortgage Interest Deduction in danger.... - Page 2 - TigerDroppings.com

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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22841 posts

re: Mortgage Interest Deduction in danger....


You are the one that believes 5% of 150K varies?







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Mr.Perfect
Louisiana
Member since Mar 2013
4889 posts

re: Mortgage Interest Deduction in danger....


I'm gonna go out on a limb and ask you two to play nice... or be meaner





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Cold Cous Cous
LSU Fan
TD OG
Member since Oct 2003
13601 posts

re: Mortgage Interest Deduction in danger....


This namecalling is irritating so let me explain it clearly. The monthly interest payment on $150K at 5% is a set, calculable amount. This is true whether the note is on a $150K house, and it's the first payment, or if it's a note on a $500K house, and it's the 200th payment. The interest simply is what it is.

Obviously with a $150K house the interest amounts will get lower as the years go by. But that's because, as years go by, it's not a $150K note anymore. Because the principal has declined.

It's a simple misunderstanding. Calling each other morons is not necessary.






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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4711 posts

re: Mortgage Interest Deduction in danger....


quote:

Doesn't matter if it is year one or year 30, 5% of 150K is still 5% of 150k.


This is true but not really relevant. You won't owe $150K in year 30. I just made my second payment on a 30 year mortgage. My interest payment is more than double that of my principal payment.






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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22841 posts

re: Mortgage Interest Deduction in danger....


quote:

This is true but not really relevant. You won't owe $150K in year 30. I just made my second payment on a 30 year mortgage. My interest payment is more than double that of my principal payment.


Correct, but a poster was saying that someone with a 150K mortgage(@5%) would be paying 'a fair chunk more' than 7K because in their first year of a mortgage. But as Cold Cous Cous said interest is simply what it is.






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sneakytiger
LSU Fan
Member since Oct 2007
1149 posts

re: Mortgage Interest Deduction in danger....


So who actually read the entire article? Tax credit > itemized deduction

quote:

The various proposals would have a tax credit from a low of 12 percent to a high of 15 percent, without the need for taxpayers to itemize their returns. The proposals would limit the mortgage interest covered in the credit up to $500,000, or half of what it is now. All but one of the major proposals would eliminate the tax credit for a second home.






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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Mortgage Interest Deduction in danger....


It's a tricky thing.....everyone complaining about the wealthy benefiting the most, I don't really believe that's true as most homes in the $1M+ range are paid for in cash, there aren't many people with $1M+ jumbo mortgages. They did it in the old days with ARMs and sold them before the refi was needed but today, most in that range are cash buyers who dont benefit from any interest deduction.

The homes in the $400-900k range are typically financed but those people aren't wealthy thats the $150-400k income families and taking away the tax benefit will definitely make them look at lower priced homes.



This post was edited on 7/10 at 8:37 pm


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MoreOrLes
LSU Fan
Member since Nov 2008
16738 posts

re: Mortgage Interest Deduction in danger....


quote:

I don't really believe that's true as most homes in the $1M+ range are paid for in cash, there aren't many people with $1M+ jumbo mortgages.


Disagree

quote:

The homes in the $400-900k range are typically financed but those people aren't wealthy thats the $150-400k income families and taking away the tax benefit will definitely make them look at lower priced homes.


Agree






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29979 posts

re: Mortgage Interest Deduction in danger....


quote:

Close to half of homeowners with mortgages—mostly lower and middle-income families—received no benefit from the deduction, according to Fisher.


I received no unemployment benefits this year for some reason.






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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6745 posts

re: Mortgage Interest Deduction in danger....


quote:

Doesn't matter if it is year one or year 30, 5% of 150K is still 5% of 150k.







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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16879 posts

re: Mortgage Interest Deduction in danger....


quote:

I'm going to go out on a limb and say you don't understand math. 5% of 150K is the same no matter what year it is.


Mother of god, you are retarded. You are the reason we are all doomed.




This post was edited on 7/11 at 5:29 am


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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22841 posts

re: Mortgage Interest Deduction in danger....


quote:

5% of 150K is the same no matter what year it is.


Mother of god, you are retarded. You are the reason we are all doomed.


Flask answer me this, who pays the most in interest in 2013?

2013 5% interest-
Billy in year 1 of his mortgage, he owes 150K on the loan.
Steve in year 8 of his mortgage, he owes 150K on the loan.
Jon in year 10 of his mortgage, he owes 150K on the loan.




This post was edited on 7/11 at 12:29 am


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Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
1940 posts

re: Mortgage Interest Deduction in danger....


Of course they're all the same but that's not what the earlier statement in question is disputing. It's pretty clear he was implying that the 150k was the original loan balance and that payments earlier in the term would be mostly interest and more than 7k.





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HeadyMurphey
LSU Fan
Los Santos
Member since Jan 2008
15785 posts

re: Mortgage Interest Deduction in danger....


I didn't think PMI was deductible





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16879 posts

re: Mortgage Interest Deduction in danger....


I'll man up on this one and say that you were indeed correct, although the relevance of the situation is questionable.





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SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
1333 posts

re: Mortgage Interest Deduction in danger....


Your and ideot.


It was pretty obvious what he meant to everyone but you. You're arguing just to argue.






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man117
LSU Fan
Los Angeles
Member since Jul 2009
220 posts

re: Mortgage Interest Deduction in danger....


I agree with tigerinno. His position makes the example universal. If you use the standpoint of house price, then years since purchase matters. People refinance also. Mortagae balance and rate are most pertinent in this discussion imo.

Edit: i can see people taking the interest charged side because a lot of people leverage the deduction until the get a higher wage and that affefts new home sales. I still agree with tiger though. I don't need any other variables with his position.



This post was edited on 7/11 at 7:32 am


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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81178 posts

re: Mortgage Interest Deduction in danger....


quote:

Mortgage Interest Deduction in danger....

I have always wondered why interest paid for a home mortgage is given deductible status.

I, for one, would like to see the mortgage interest deduction phased out over a given time period for existing borrowers.






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udtiger
LSU Fan
Louisiana
Member since Nov 2006
24849 posts

re: Mortgage Interest Deduction in danger....


1) repeal income tax (along with all deductions, credits, etc.)
2) national sales tax of 15% on EVERYTHING (including food and medicine).

Done






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Bear Is Dead
LSU Fan
Monroe
Member since Nov 2007
3603 posts

re: Mortgage Interest Deduction in danger....


quote:

Yes, because your principal is higher at the beginning then at the end.

lol, wut?






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