General Discussion
In reply to the discussion: One of the reasons there is talk about getting rid of the mortgage interest deduction is [View all]SheilaT
(23,156 posts)somehow desperately need the interest rate deduction to make a house payment. When I went to buy this place three years ago, I wanted a payment that was no more than the rent I'd been paying. In the end I wound up with a payment less than my previous rent.
My tax preparer told me after I bought this place that I'd be able to deduct the interest payment for about the first five years, and after that, it wouldn't be enough to let me itemize. Meanwhile, I have a house payment I can afford.
I wonder just how many tax payers are actually using the interest rate deduction? And I remember reading something back in the 1970's suggesting that it be phased out, that it had already outlived its usefulness, and in fact was a huge factor in the inflation of housing prices.