Do Not Eliminate Mortgage Interest Deduction!

Have you heard that one of the solutions to resolve the federal budget deficit is a proposal to eliminate… mortgage interest tax deduction for home owners?

That’s true. This was one of the proposals included in suggestions from President Obama’s deficit commission. Its preliminary report was released to the media in November.

Now, the goverment needs to balance the budget but there’s a question whether eliminating home loan interest deduction will help the economy.

According to the NAR (National Association of REALTORS®), Mortgage interest has been deductible for nearly 100 years, and the proposed changes will affect 75 million home owners in the United States.

When purchasing a home, buyers compute the tax benefits. Without the tax deductions on mortgage, many families would not be able to afford their homes.

The NAR asks Realtors to contact Congress and urge them to oppose any efforts to reduce or eliminate the Mortgage Interest Deduction.