General Discussion
In reply to the discussion: Just had a right-winger, a banker, in my office this morning [View all]Hoyt
(54,770 posts)If I had the money, I could buy a $900,000 home on 1/1/2018, pay 20% down, and still get to deduct all my mortgage interest.
The median priced homes -- around $225,000 -- are a long way from that cap and probably the $10K cap on state taxes. I get there are localities that are high cost, but we are talking mostly about people with much higher incomes.
Fact is, if I took out a mortgage of $850,000, I would lose after taxes only about $1,400 in 2018 because of the interest I could no longer deduct on the $100K above the threshold.
Someone who can afford a house with an $850K mortgage (that's over a $ Million home) can probably absorb that $1,400 and the impact of the state/local tax cap. If they can't, they need to buy a cheaper house, perhaps increasing prices in that range a percent or two.