That’s why you shouldn’t buy more than you can afford, shop the best rate, get the shortest loan period, and pay it off asap.
Without the financial incentives to buy a home, you would have a much more mobile population that could quickly migrate from one state to another. To states like California, New York, and New Jersey, this would accelerate the ongoing exodus of taxpayers and corporations to a point that would collapse the states completely. While this sounds good, the government knows it couldn’t let it happen.
The deduction is part of the calculation of whether you can afford the house. Taking it away will cripple home prices hurting even those that have paid off their mortgage.
I have the money to pay off my mortgage. If the deduction went away, I would simply remove the cost of my house from my investments. Multiple that by millions and the business and financial sector take a whack too. In the end, this move to increase taxes will reduce income to the government.
I don’t understand why conservatives would fall for this populist move.
One should do all of those things; but that really has nothing to do with eliminating deductability of mortgage interest.
This would be a large tax increase on homeowners.
Really just another way to take from those who have, and give to those who don't.