Mortgage Interest Deduction in danger.... | TigerDroppings.com

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MoreOrLes
LSU Fan
Member since Nov 2008
16555 posts

Mortgage Interest Deduction in danger....


of being screwed up by the same folks that love ethanol so much they are mandating 15% ethanol/failure at the pumps. Nice

LINK


How could anyone think that touching the interest deduction wouldnt hurt the housing market is beyond comprehension.

Im left with just one thought.....just another tool /regulation used to share the wealth.










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TJG210
LSU Fan
New Orleans
Member since Aug 2006
21642 posts
 Online 

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.


What a pile of bull shite.....






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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56112 posts

re: Mortgage Interest Deduction in danger....


quote:

What a pile of bull shite.....


It's true. They aren't paying enough in interest, especially with rates so low to claim anything more than the standard deduction.


If you owe $150k on a house at 5%, you're paying somewhere around $7,000 in interest. So unless they can itemize $5,500 more...they are just claiming the standard deduction.



This post was edited on 7/10 at 4:17 pm


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iknowmorethanyou
LSU Fan
Paydirt
Member since Jul 2007
4482 posts

re: Mortgage Interest Deduction in danger....


They did however claim the frick out of the Earned Income Credick and Child Tax Credick.





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MoreOrLes
LSU Fan
Member since Nov 2008
16555 posts

re: Mortgage Interest Deduction in danger....


quote:

with rates so low to claim anything more than the standard deduction


This wont always be the case yet any changes to the Mortgage Interest Deduction will.

Its a bad idea.






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PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
9978 posts

re: Mortgage Interest Deduction in danger....


quote:

So unless they can itemize $5,500 more


Well given that property taxes and PMI are deductible that shouldn't be all that difficult to reach.

quote:

If you owe $150k on a house at 5%, you're paying somewhere around $7,000 in interest.


If you are the beginning of your mortgage you would be paying a fair chunk more than this.






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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56112 posts

re: Mortgage Interest Deduction in danger....


Well those are Credits, not deductions.





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iknowmorethanyou
LSU Fan
Paydirt
Member since Jul 2007
4482 posts

re: Mortgage Interest Deduction in danger....


They are proposing morphing the deduction into a credit to reach more taxpayers. I believe the aforementioned credits offer the lower class plenty without altering the deduction.





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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56112 posts

re: Mortgage Interest Deduction in danger....


quote:

Well given that property taxes and PMI are deductible that shouldn't be all that difficult to reach.



I'm three years into a $160k mortgage. I'm not even reaching $9000 in PMI, taxes, and interest.






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PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
9978 posts

re: Mortgage Interest Deduction in danger....


quote:

I'm three years into a $160k mortgage. I'm not even reaching $9000 in PMI, taxes, and interest.


I'm three years in and I am over 20K. Just saying that there are still a ton of people that can use the interest deduction. That quote saying that MOST people dont take advantage is a pile of BS.






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tirebiter
LSU Fan
ATL
Member since Oct 2006
5135 posts

re: Mortgage Interest Deduction in danger....


Unlike P&G1986 you can also itemize state income tax whereas he pays higher property tax due to TX having no state income tax. Not really apples to apples the way you guys are going at it.

Why can't people who have benefited from low mortgage rates/costs just be happy...






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PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
9978 posts

re: Mortgage Interest Deduction in danger....


quote:

you can also itemize state income tax whereas he pays higher property tax due to TX having no state income tax


Correct. I would venture to say that most people that have a mortgage and aren't in the last part of it can itemize because of the interest deduction. If the interest deduction would be taken away a lot of people would not be able to itemize.






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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56112 posts

re: Mortgage Interest Deduction in danger....


For the record, I do itemize... but it wouldn't surprise me that those in low income brackets that have mortgages on $125k houses are itemizing.





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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22551 posts

re: Mortgage Interest Deduction in danger....


quote:

If you owe $150k on a house at 5%, you're paying somewhere around $7,000 in interest.


If you are the beginning of your mortgage you would be paying a fair chunk more than this.


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






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PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
9978 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.


You do realize you pay more interest in the beginning of a mortgage right? I'm going to go out on a limb and say that you don't.






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reb13
Ole Miss Fan
Oxford, MS
Member since May 2010
9834 posts

re: Mortgage Interest Deduction in danger....


No way they get rid of this.





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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22551 posts

re: Mortgage Interest Deduction in danger....


quote:

You do realize you pay more interest in the beginning of a mortgage right? I'm going to go out on a limb and say that you don't.


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

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.






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PurpleAndGold86
LSU Fan
Houston, TX
Member since Jun 2012
9978 posts

re: Mortgage Interest Deduction in danger....


quote:

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


Holy shite you are fricking moron.






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chauncey1
LSU Fan
Member since May 2010
163 posts

re: Mortgage Interest Deduction in danger....


TigerintheNO,
Most mortgages have front loaded interest.
I'm going to go out on a limb that you don't have a mortgage...



This post was edited on 7/10 at 5:24 pm


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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Mortgage Interest Deduction in danger....


I have 150k house at 3.25%. Pretty sure I'll be taking the standard.





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