Home Ownership: The Mortgage Interest Benefit Homeowners Have Over Renters

There has been talk, that politicians want to take away the Home Mortgage Interest Tax Deduction,  currently enjoyed as a benefit of Home Ownership.  Home Owners comprise 65% of the population.  Despite the housing market crash, and five million home foreclosures nationwide, the American Dream is still surviving depsite these tough economic times. 

While it is true that Mortgage Burning Parties may be forever a thing of the past, removing the benefit of the Home Mortgage Interest Loan Deduction would be paramount to sucker-punching the home buying public.

Home Mortgage Interest Loan Deductions do trickle down through the economy. When a homeowner receives a credit it reduced their tax liability. Closing costs are also a tax deductible item.

So in any given year someone buys a home, the following years return is often a hefty one if they had rented previously. 

 The housing market has already suffered significantly-there is no point in slashing the one true benefit home owners have which is the tax deduction of their Home Mortgage Interest and Property Taxes.

 

That money can be reapplied to future mortgage payments, or used to offset unexpected expenses.  With unemployment at 14.3% (real) including people who have been out of work, whose benefits have expired, or have just given looking–the demand for continued relief in any form will help taxpayers in tough times. For those who have been long time home owners it will help stave off rising costs in other areas.  Until such time as the economy really recovers, it would be counter-productive for legislators to be looking at this as a consideration.