Mortgage Interest Deduction on the Chopping Block!
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I have been reading the comments on this blog for some time now and I have just a few questions and comments for all of you.
QUESTIONS:
1. Why is is fair that 47% of the citizens of this country DO NOT pay any income tax at all?
2. Why is it fair that the remaining 53% should be supporting that 47%?
COMMENT:
3. Don’t give me this “they are so unfortunate and poor that they can’t afford to pay their fair share of income taxes”.
QUESTION:
4. Do you know what the difference is in a rich person and a poor person?
ANSWER:
5. Attitude and choices. With just a few exceptions, poor people are poor because they chose to be poor! They made the choices in their lives NOT to study in school and get good grades. They chose to just hang around with their hommies and be bumbs because it was the cool thing to do. They chose NOT to get the education and training they need to be successful. They chose NOT to make the short-term sacrafices necessary to be successful. Anyone can be rich in this country if they choose to do so.
QUESTIONS:
6. What is this crap that a house is to be purchased ONLY if it will save you on your taxes and make you a fortune in appriciation?
7. Whatever happened to pride of ownership?
8. Whatever happend to the notion that when you paid off your home you no longer would be paying rent to someone for the rest of your life?
COMMENTS:
9. Home values have gone up and down since people started selling homes.
10. And until recently, no one ever just walked away because the value went down. They borrowed the money and they had a moral and ethical obligation to pay it back.
QUESTIONS:
11. For those of you who walked away from your home because it is now worth less than you paid for it I ask you. Would you walk away and justify your dishonesty if the one who loaned you the money was your parents or grandparents? Unfortunately many would do just that with no guilt what so ever. Sad.
12. Are you now going to walk away from your Beemers, your Mercedes, your motorhomes, your boats, your big SUV’s? Each of those dropped 30% in value when you drove it off the dealers lot. What about that investment?
COMMENTS:
13. This melt-down in our economy just didn’t happen because of a few dishonest Wall Street institutions and banks. Think about it.
14. It happened because since the 50′s we have been raising generation after generation of people with an entitlement attitude, people who want BIG government to rescue them and remove thier responsibility from them for their stupid choices in life.
15. Those who chose a sub-prime, stated income, or pay option loan, knew exactly what they were doing and those who sold it to them were just as guilty.
16. Any one who thought this bubble wasn’t going to burst had their head burried deep in the sand of denial.
17. It is time for all of us to accept the fact that we did this to ourselves and the time to pay the piper has come. Sadly, those who have benefited the most from all of this are the ones complainig the most.
18. The free ride is over.
Excellent comments! Dito
So if someone has a $500,000 loan, they lose the tax deduction? More class warefare, what a great idea.
I dont know what the bloggers here are getting so excited about? The mortgage interest deduction will still EXIST understand, comprende???? only up to $500,000 mortgages instead of the current 1M, the average mortgage is $250,000 people meaning about 98% of mortgages are NOT affected by this change if approved.
As for the righties out there talking as usual how can you agree with a political party that takes from the working class poor & most needy only to give it to millionaires, billionaires & huge multi-national corporation whom need it least?? This is unethical & I know I will never be a conservative.
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1. the proposal is for interest deductions to stop at $500,000 instead of the current $1MM.
2. 51% of the nation doesn’t pay ANY income tax and since the average loan amount is $250,000 this means probably most if not all NON PAYING Americans wouldn’t be affected anyway. This again is aimed at high income families that PAY TAXES.
3. property taxes can still be deducted.
4. this will further elongate appreciation of values as homes will not be as an attractive INVESTMENT as in the past.
5. this coupled with higher rates which are probably a year away will further affect appreciation of value as demand will drop even if someone could qualify.
So it would seem again paper or plastic training is in the cards for Realtors who can’t spell assassination anyway.
#1 reason to own real estate is the tax advantage..ie..MID…
#2 reason to own is long term appreciation.
Appreciation has taken a huge hit and looks like years before it ever goes up again, which only leaves one reason to own, MID. If Oboma pulls this off surely he will be assinated!! What more do we need to see from this idiot to know that he is nothing but an Al Queda implant, I am starting to think he came up with the 911 plan…bastard is driving the US into the ground faster than any politician that has ever lived. Way to go to those idoits that voted for him….you got your change all right….
I am impressed by the general understanding of the bloggers on this site. Even my 17 year old son understands the conspiracy against middle class Amerika! It is evil as the other blogger stated. Join Americans For Prosperity, re distribution of wealth making middle class dependent on government aid as our rights are slowly deliberately taken away; is a Jihad against the Amerikan government far behind?
On a side note: government pensions, state or otherwise, are unsustainable, why do government employees get paid for retirement while the private sector relies on a bankrupt social security system that we are forced to pay into. Shouldn’t we have the right to take the same SS funds and invest ourselves? Does the government have a better track record of investments? Buy gold!
Guys – you are normally spot on but I have to disagree on your reasoning why closing costs are higher. It is a buyers market and sellers are offering huge buyer bonuses. In a sellers market, we often did low closing cost loans because the buyer had to pay them out of pocket. Now that Fannie Mae is offering 3.5% closing cost credits on Homepath Homes and you see builders and bank owned properties offering credits of 3%-9% to buy rates down, the average closing costs are going to be higher. The TIL does not take seller credits into consideration – closing costs are closing costs no matter who pays them.
Dropping the mortgage interest deduction will result in me losing my house, my business, my wife, and even my cats.
It will completely ruin my life!
Everyone needs to call their congressmen and stop this bullshit from happening.
We are getting mighty close to a shootin’ revolution, this might be the straw that breaks the camels back. So many people will lose their houses it will trigger very agressive behavior. Maybe we’ll get lucky and it will be the same kind of aggressive behavior as happened to Bin Laden!
A big snap back to reality for politicians is definately in order lets hope it happens soon.
Randy
read what kurt francis said….the maximum deduction will be
$500,000….if you pay more than this amount in interest annually …you probably are in that top 2% group and so you don’t need any help !
nice class warfare Sylvia 61. Thanks for voting Democrat!
Let me make one correction to my 10:33 post.
Here’s the qoute from Ammo: The first post I’m referring to.
The fact that we are here today to debate raising America ’s debt limit is a sign of leadership failure. It is a sign that the US Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Increasing America ’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. Guess who said that?
– Senator Barack H. Obama, March 2006
Please explain to me what HVCC (that is no longer in effect) has to do with fees, as you contend?
The government introduced the MID to spur home ownership……Here is the problem flat out…When the government steps into artificaly spur hoemownership you get bubbles, demand rises, values rise, specultors/builders/new units rise because they have a profit cycle, rising values and exit stratigies (faux demand). You need to look at the big picture, many experts have agreed that the MID added about 20-30% of value. assuming same rate and monthly payments. at 20-30% lower prices, a home buyer could by the same home on 15y fixed vs 30y fixed. they could be shelter expense free in 15 years and if smart by 30 years own a 2nd income producing home for passive retirement income or sale the home for net proceeds . how would that help the seniors on SSI and Medicare. The current idea to payoff your home for 30 years, keep in mind this your shelter you have lived in for 30 years, when retired most are broke. they either sale thier shelter (if you lived thier for 30 years wouldnt you want to remai?) or even worse they do a reverse mortgage and pay the bank interest on thier home they just paid off…..how fricken comical is this….
soon as you all pull down the velet curtain, you will see that this is all about financing for longer terms and increase in property tax revenue. look around, cost of shelter is so high that to purchase an average car many have to finance the car for 5-7 years before the car is even paid off, it is falling apart.
for the Public Employees taking about no raises, how out of touch are you!! we are in a depression, every county survived by local / federal revenue. all revenues decreased and you complian/brag you did not get a raise for the last 3 years..do not think for one momment you will recieve any sympathy from the private sectors who have lost business, jobs, lifesavings and recieved huge pay cutts. knock the chip off your shoulder.
back to the shadows…
Yo guys, it was my understanding that it was proposed to lower the loan amounts for mortgage interest deduction from $1million to $500,000. So if the avg loan amount is around $250,000 like you said, hopefully this will have less impact on real estate than you are claiming. If you can afford to have a $800,000 mortgage, hopefully you can afford to pay a little more in taxes too. Seriously, our deficit needs to be addressed.
I agree with you what’s the big deal about…if you claim more than $500,000 in mortgage deduction….you are carrying a pretty huge mortgage not the average…my mortgage is $600,000 and my interest deduction is $60k…so what!!!!
…and I quote: The fact that we are here today to debate raising America ’s debt limit is a sign of leadership failure. It is a sign that the US Government can not pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Increasing America ’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. Guess who said that?
– Senator Barack H. Obama, March 2006
it is political grandstanding, every USD in the monatary system is debt. (a coupon,note,bond) a promised to repay with interest. How can we ever get out debt when the shear monatary form we use to pay off our debt is interest bearing debt…….i owe bank of TBWS one dollar plus interest, I create a 4% note and sale that note to average joe plumber, he loans me 1 dollar +intrest owed to bank of TBWS. I remit payment to bank of TBWS, am i out of debt?
wow, nice quote…
I will tell you how bad housing is right now I just sold my house on a short sale (had no choice) now in Sept 2005 it apprasied for $129,000. Now its $100,000 thats 29% decrease in 6 years. Wow. Dont tell me the midwest is getting hammered now.
good you got out, it is going to get alot worse, downsize, conserve, prepare….
You right wingers do not get what is happening – this is not stupidity this is downright evil. They are not trying to help the housing market- They are trying to cause more problems in the housing market to reach two of their goals:
1) Reduce prices further – so those with cash and the ability to qualify can buy everything in site on the cheap and make it so the average middle class person will never own a home and be a renter for the rest of their lives – and;
2) Crash the economy further to reduce labor costs and get a right wing freak in the white house to appoint new corporatist right wing thug Supreme Court Members when their older “properties”… Fat Tony, Kennedy and Uncle Clarence Thomas drop dead, which odds are one of them will do soon.
Keep supporting them and voting against yor own interest and they will turn us all nto renters before we are through – Hope you enjoy your new $10 an hour jobs as leasing agents… grow a brain losers
The most retarded govt agency is HUD/FHA they have doubled MI for EVERYONE since last October. This means more expensive for first time homebuyers and ESPECIALLY people that want to refinance. You have someone right now with a 6% FHA rate they cannot streamline with the monthly MIP going from .50 to 1.15 they cant save the 5% net tanglible benefit.
Also why isnt the MIP tiered based on FICO score they do it now with Fannie/Freddie. If you have someone with a 720 score over 95% LTV they will be less of a risk that a 640 at same LTV.
The dems could give a crap about housing since all their voters have bad credit due to the pay Option ARM someone sold them and they walked away.
HUD will have large defaults very soon, could that be HUD raised the the monthly MIP…..when you have a flawed DTI qual system and FHA lending up to 729k for SFR’s mixing in a sinking market you get massive losses….PIMCO is nationaly training agents on the next wave, HUD REO’ homes.
Please explain why you are addressing the right wingers? I truly don’t understand that. Thanks ahead of time for your response.
Hey Lefty – you are so delusional, it’s hard to believe that you actually put that in writing and posted it. The biggest threat to our country right now (besides a completely dumbed down electorate – which includes you) is obongonomics.
I have never been so disappointed or angry concerning the incredible attitude and actions of the people we hire to go to Washington and reepresent our interests. They have sold out the citizens, the people who have worked their lives to pay the taxes and build an incredible economy by hard work and investing in ideas and sweat. Now we are on the verge of losing our freedom, our beliefs, and our country. Maybe now is the time to say ENOUGH and start to defend our homes and way of life. We did it once before and we can do it again. Think about it !
research Brooksley Born….pay attention to the names going against her…all too uncanny
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Are you freaking kidding me? If they decide to eliminate the home owner’s interest deductions, strategic defaults are going to explode! How stupid can they be.
Thanks for the shout out guys, we enjoyed having you in Austin.
They do away with MITD and that is the day I stop paying taxes all together…#$%3 em!!!!
Good call!
Ha!
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When will we all realize that this is ALL by design. They want all the proerty, they want EVERYONE dependant on the Gov’t. There is NO OTHER EXPLAINATION> Good intentions, POPPYCOCK!
I am SO GLAD that you guys, Brian and Frank, are seeing the light when it comes to this gov’t jihad against us. Taking away deduction is not raising taxes, errr Okie Doke!
ALL Gov’t runs on Private sector $. The debt is in OUR name, not “theirs” and they want it all.
Why are cuts always cuts against you and me? Never do they “cut” any of the thousands upon thousands of worthless gov’t programs, or employees, no just yours and mine EVERYTIME!.
They are (have) intentionally ruining our industry *(real estate) like every other private business, and they don’t care. Talk to a pub teacher or any other gov worker about this, they could care less that private sector is swirling the drain, they could care less that we have lost everything with NO recovery in sight for the next 50 years ( if ever). Their pay increases every quarter, with carte blanche benies…
No debt ceiling, better to have it now than later. Later will be too late.
70 million people on the gov’t dole? How many of these people are “productive” in any way?…uhhh NONE OF THEM. They only TAKE, welfare people have made it a CAREER! for example. Pub Schools exploit our children for THEIR GAIN. OUR KIDS get an AWEFUL ed here in USA pub schools. It is just a dumbing down indroctrination camp.
Stop the Gov’t Liberal scourge NOW! NO MORE BLANK CHECK BARRY!!!!!
Sorry, you had me until the government workers. Something everyone fails to grasp is the non-elected government workers are like the rest of us. They are not getting raises, extra benefits, etc. Where have you been during the past 3 months when Wisconsin, Minnesota, etc., have been having downright riots about cuts to the government workers?
My husband is a government worker and hasn’t had a raise is 3 years, has to have 6 furlough days a year (essentially a cut in pay) and benefits are frozen until further notice.
Teachers? Please! A person has to get a master’s degree (6 years of expensive college mind you) to teach kids and begin at an average starting salary of $25,000 a year? Yeah, they look like greedy grabbers to me.
Let’s get back on track. If the mortgage interest deduction goes through, with all the effort of NAR and state boards of realtors, then 2012 should be clean ‘em out, clean ‘em out, clean ‘em waaaaaay out of every single conceivable elected office we have. That is our primary source of protest and we need to do it in a united manner. It doesn’t matter who wins, so long as the incumbent is out.
Private Sector, careful whose toes you step on and you need to get your facts straight. Not all public employees are taking advantage of “the system”. Since I am also a public education employee, I thought you might need to understand that there have been no pay increases for the last three years, our share of insurance cost has risen dramatically, our share of cost in other “benies” has increased annually for each of the last three years; and, yes, we feel the pain since our take home pay has decreased with each and every “toll” taken. If you don’t have enough stress in your life, try driving a crowded to capacity school bus twice a day. You might develop an appreciation for the small amount that we get paid for providing that service. We all work for the “benies” since the pay would not attract anyone to the job. By the way, I enjoy most days and the interaction with my crew of passengers. You have to have a “calling” to work with children or you won’t survive.
So sorry you have a job you don’t like. Gee let’s complain and gripe. That helps. Be glad you have a job OR go get a different one while you still have the opportunity to make a choice. The days of choice are numbered.
Publicly funded elections……now…….until the huge money and lobbying gets out of our electoral process nothing will appreciably change for 99.9% of us; not for the .1 things will only get better……..see http://www.lcurve.org
One more example of how those in “power” do not understand what makes it all work, or changes that could improve things. If they are messing housing up this bad, I wonder how bad they have things in other industries screwed up… that was a rhetorical question.
Oh we understand, this is on purpose, we want it all. The constitution means nothing to us, we don’t believe in private property, private industry, capitalism. We are out for all of you and now that over 1/2 the population is PAID with taxes while paying NONE in, and that Faorclosures have just begun, our plans to “communize” private sector is working to a tee.
Ironically, taking away the MID won’t even raise as much as you state because the MID is not available for N/O/O properties. But they already deduct thier interest through rental property write-offs. So, the only people this really hurts is people that want to buy thier own home to live in.
All Congresses and Parliaments have a kindly feeling for idiots, and a compassion for them, on account of personal experience and heredity.
- Mark Twain’s Autobiography; also in Mark Twain in Eruption
Hee is another section of Dodd Frank that is not in the interest of the folks
What are you thoughts on Dodd Frank controlling seller financing?
http://goo.gl/bzqj4
The DFA definition of mortgage originator exempts an individual (or an estate or trust) that provides mortgage financing for no more than 3 properties in any 12 month period from the requirements of Title XIV, but only if the financing meets certain rules:
1. The seller did not construct the home.
2. The loan is fully amortizing (no balloon mortgages allowed).
3. The seller determines in good faith and documents that the buyer has a reasonable ability to repay the loan.
4. The loan has a fixed rate or is adjustable after 5 or more years, subject to reasonable annual and lifetime caps.
5. The loan meets other criteria set by the Federal Reserve Board.
This is Anti American
I guess if you would look back to prior comments I have made you will see me hinting we are going to take it away . Here is the game plan we want more investors owning and renting . We are going to flip the ownership to this in a higher ratio and then we will change the tax code to screw the investor . We have no choice people taxes are going up up up and your deductions will be taken away . Now get your lazy butts out there and get real jobs. ALl of you realtors and loan officers are the problem , get a real pay check so we can tax the hell out of you . No one is or will be buying houses except the investors that can bail out the home owner leaving. Then again we will shift the tax burden to the investor and cream them for our Georgetown money ! Oh well I am sitting on a nice boat on the east coast reading my emails getting paid today and may staff is also thanks to all of you that do get a real pay check and we can attach to it , so thank you !
Congress is talking about reducing the mortgage deduction for high end homes – phasing it out at $500,000 value and eliminating second homes and investment properties. The vast majority of homeowners would not lose anything.
Charlie – 500k may be a high end home where you live – it is not here in California. It will hit many many homeowners here.
Its based on the mortgage balance…meaning up to 500,000 and not the value of the home. $500,000 is a fair amount.
$500,000 is fair for you right. My home will be on the market as a short sale and then be forecosed on because no buyer in their right mind will purchase it. Get a clue dude, this is not representation by a Presidential team voted in for the right type of change. Look at the first post in this sting of post. Look at the actions from of this President and his team. He has changed his team more than any other President in office. Mainly because his policies don’t work and his advisors are clueless. Think about this…What has this administration done to help America? If you truly want to fix the problem then get involved as a voter and get rid of people who don’t understand economics and the American society. Do you know that only 8% of the Presidents team have had a real job? This group of people are clueless about how to fix or remedy the economy. Look at the first posting on this string of post one more time and think about that statement? It’s the sound of a senator who wants to be president! His agenda and plan? He doe’s not have a plan that he will share with you and I. He and his team are from a socialist party that you don’t want running this country the evidence is in his policy making. You only need to look at where they are headed.
We can waste allot of time arguing amongst ourselve’s and that’s what they want. Confuse and frustrate the public then do more to harm them all for gain. This President is a special interest President, don’t be fooled by his double talk. He is SEIU cold blooded and hell bent on ruining our economy.
Our national economy was on the verge of bankruptcy when Obama took office courtesy of Bush#2 & Vp Cheney with his Halliburton Co. conflict of interest destroying all of Iraq so his company could rebuild it & profit billions $$$ @ US taxpayer expense!!!!
you sure about that, Charlie?
If they DO eliminate the home owner’s Mortgage Interest from the allowable tax deductions………Strategic Defaults are going to SOAR to levels heretofore never even imaginable! I honestly can not believe they are THAT stupid. However, I honestly believed that I would never see housing prices drop 60+% either. I mean this would take away ANY incentive for ownership of your personal residence, and a huge chunk of incentive for INVESTORS!!!
What’s the plan? For all of us to become “tenants of the state” ???
Can’t wait to read your comments, Comrades.
Gregg
You are spot on, Obama and the left have the machinery in place. The only problem is the country hasn’t hit bottom yet. We can only hope the public wakes up in time to save our Freedom. Freedom is a precious thing, we all take it for granted and don’t pay enough attention to what is really going on. We are like sheep being lead to slaughter by a Judas Goat.
the plan is not to eliminate the deduction it is to reduce the amount from $1mm to $500,000
I am always freshly amazed every day at the stupidity of our elected officials……..
Fees are up! This must mean appraisal fees are going up! Happy days are here again!! In fantasy land.