Umm, can I get a resounding no? Obviously the government (remember them, the people who created the deficit in the first place) is now looking for any means to decrease the deficit. So it seems the the White House deficit commission’s latest victims could be homeowner’s mortgage interest deductions. Apparently, this would end the mortgage interest deduction on primary-home mortgages above $500,000, down from the current limit of $1 million. Well that’s all well and good if you live in Kentucky, but in greater Los Angeles, the majority of the homes are above $500,000.
Could this actually come to fruition? Well, it seems that it would create a quite an uproar if it did, but that doesn’t mean it won’t. Our nation’s deficit has grown to $14 billion and no stone will be left unturned while they’re trying to figure out where they can make some money back.
If today, we weren’t climbing out of the worst depression since the great one, then maybe it would be viable, though don’t get me wrong, people would never be ok with getting rid of this. But, we all have to deal with things we don’t agree with a lot of the time.
The true issue here is that during the last few years, the housing market almost more than any other sector has been dealt a blow of epic proportion and it is slowly, I mean slowly, climbing its way out of the hole. With homes sales being such a significant part of the economy, the government needs to look elsewhere for places to decrease the deficit (again, that they created). The last thing we need is to start going back in the other direction.
For many homeowners and potential homeowners, this deduction is a key benefit to owning buying a home. So, let’s all cross our fingers and hope that lawmakers see the light.