Mortgage Interest Deduction

November 28th, 2010

Mortgage Interest Deduction

One of the largest motivating factors for buying real estate is the mortgage interest deduction (MID). This allows one to deduct the interest paid on the mortgage for the home from their federal taxes. And in tough times when real estate is not making incremental jumps in appreciation, the interest deduction is one of the bright spots when filing taxes. But this deduction has always been a heated topic between politicians and economist. And today, when our national debt is high and our economy is smuggling, the mortgage interest deduction talks are boiling up again.

Some say that losing the interest deduction would have a huge impact on the American Dream: to own a home. And I have to say that this is true. As a realtor, I’m constantly comparing what the cost are between buying a home vs. renting. This is a complex question and is different for each individual. Yet the mortgage interest deduction is a huge factor in the equation. Without this deduction I’d have to say the buy vs. rent question becomes very cloudy and even more difficult.

NAR – the National Association of Realtors has come out with some strong arguments to keep the deduction in place. Click here to read more about the mortgage interest deduction.

It’s also stated that if the mortgage interest deduction was halted, real estate values would be affected in a negative way for there would be few buyers of homes. The debate continues.

—For more on this topic or questions regarding real estate in Steamboat Springs, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com. I will answer your post or email promptly with candid and informed answers. Click here to view all properties in Steamboat Springs in “real time” — This is one of the few real estate sites showing all foreclosed and all short sale listings in real time and updated every few minutes.

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