I don’t understand the Mortgage Interest Tax Deduction. Why help home owners and not renters. There shouldn’t be any tax deduction.
By STEVE COOK, Real Estate Economy Watch
As the final days of the Presidential and Congressional elections draw near, most participants said they would be happy to get rid of the crown jewel of housing policy, the mortgage interest deduction.
More than half of respondents in the September 2012 Zillow® Home Price Expectations Survey, want to eliminate the mortgage interest tax deduction. Some 50 percent said it should be phased out gradually and 10 percent want it cut as soon as possible. Thirty percent said the deduction should have more eligibility restrictions placed on it, while 11 percent believe it should remain as-is.
“Although the mortgage interest deduction remains enormously popular with existing and aspiring homeowners, it costs the federal government about $90 billion a year,” said Terry Loebs, founder of Pulsenomics LLC, the company that conducted the survey for Zillow.
“Time will tell whether the unprecedented fiscal challenges facing the U.S., coupled with a housing market now on the mend, will embolden more policymakers to touch this lightning rod,” Loebs continued.
Meanwhile the MID remains under attack in national campaigns and the media. Efforts to get a plank in the National Republic Party platform failed in August and the effort generated critical media coverage included an August 30 column in Bloomberg View by Amity Shlaes is a senior fellow and director of the Four Percent Project at the George W. Bush Institute.
“To many today, however, the chief appeal of repeal is the reduction of price distortion. You are more likely to lose a house if you paid too much, because its true value was muddied by politics. You are more likely to keep a house whose price at the time of purchase was transparent and derived from the relative quality of the investment,” she wrote
Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.
We're sorry, but it seems that we're having some problems loading MLS # S712716 from our database. Please check back soon.
Proprietary OC Housing News home purchase analysis
$569,000 …….. Asking Price
$530,000 ………. Purchase Price
8/31/2009 ………. Purchase Date
$39,000 ………. Gross Gain (Loss)
($42,400) ………… Commissions and Costs at 8%
($3,400) ………. Net Gain (Loss)
7.4% ………. Gross Percent Change
-0.6% ………. Net Percent Change
2.3% ………… Annual Appreciation
Cost of Home Ownership
$569,000 …….. Asking Price
$113,800 ………… 20% Down Conventional
3.60% …………. Mortgage Interest Rate
30 ……………… Number of Years
$455,200 …….. Mortgage
$115,817 ………. Income Requirement
$2,070 ………… Monthly Mortgage Payment
$493 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$142 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$287 ………… Homeowners Association Fees
$2,992 ………. Monthly Cash Outlays
($325) ………. Tax Savings
($704) ………. Equity Hidden in Payment
$133 ………….. Lost Income to Down Payment
$91 ………….. Maintenance and Replacement Reserves
$2,187 ………. Monthly Cost of Ownership
Cash Acquisition Demands
$7,190 ………… Furnishing and Move In at 1% + $1,500
$7,190 ………… Closing Costs at 1% + $1,500
$4,552 ………… Interest Points
$113,800 ………… Down Payment
$132,732 ………. Total Cash Costs
$33,500 ………. Emergency Cash Reserves
$166,232 ………. Total Savings Needed
The property above is available for sale on the MLS.Contact us for a comparative market analysis, a cost of ownership analysis, or information on how you can make an offer today!
Cost of Ownership AnalysisAre you ready to make an offer, but you are worried the cost of ownership is really more than you can afford? Don't make a mistake that might cost you the family home, your life savings, and your good credit! Get the advice of a seasoned professional. Contact us at email@example.com today! We produce detailed reports showing the cost of ownership based on the most likely transaction price and current financing terms. You will know how much you will spend each month in out-of-pocket expenditures and the true monthly cost of ownership factoring in tax deductions, loan amortization, and opportunity costs on your down payment. In addition, we show you how this cost compares to a rental of equal quality to make sure buying is the right decision for your situation. An OC Housing News Cost of Ownership Analysis will calm your worries and give you peace-of-mind. Let us show you the way! Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at firstname.lastname@example.org, and we will prepare the reports for you.
OC Housing News FREE Guides!
Nearby ForeclosuresGain a competitive advantage over other buyers. By locating distressed properties -- before they hit the MLS -- you can discover where tomorrow's REOs and short sales will appear. Most of these properties are not listed on the MLS, but they will be soon. Research properties in advance and get a jump on your competition. Don't miss out on another deal because you couldn't act quickly. Use this tool to your advantage! The red properties are already bank owned. As soon as REO asset managers prepare them for sale, they will be on the MLS. Get ready! The green and blue properties have owners who are not paying their mortgages. They may be offered as short sales, or they may go through foreclosure and become REO. Either way, they will also likely be available on the MLS soon. Find your next home! Be prepared to offer on these properties by researching them in advance or risk losing out to buyers who are have done their homework. Start your research today! To find distressed properties, enter your desired location and press search. Scroll through list by pressing "next."
Comparative Market AnalysisAre you ready to make an offer, but you are worried you will either (1) underbid and miss the property or (2) overbid and pay too much? Don't make a mistake and miss your dream home, or worse yet, overpay for it! Get the advice of a seasoned professional. Contact us at email@example.com today! Are you thinking about selling, but you are worried you will either (1) overprice and fail to sell or (2) underprice and leave money at the negotiating table? We are the experts in real estate valuation. Work with us to set the right prices to sell your property quickly for the largest amount possible. Let us show you what your property is worth today! An OC Housing News Comparative Market Analysis will calm your worries and give you peace-of-mind. See for yourself right now! Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at firstname.lastname@example.org, and we will prepare the reports for you.