General Discussion

unblock

(56,252 posts)

27. if this is gonna happen, at least you have to grandfather existing mortgages.

Sun Sep 9, 2012, 10:33 PM

Sep 2012

not cool at all for people to lock into a 30-year mortgage assuming 30 years of tax deductions and then, a few years in, face maybe 27 years of losing the single biggest tax deduction they could ever hope of seeing.

phasing it in over 5 years may be a good idea for NEW mortgages, but even a 5-year phase in for existing mortgages is a guaranteed way to increase foreclosures. some people couldn't afford their house AND they would be forced to sell at a much lower price due to the tax change.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

43 replies

= new reply since forum marked as read

Highlight:

One of the reasons there is talk about getting rid of the mortgage interest deduction is [View all] WCGreen Sep 2012 OP

23.6 decades since independence from Britain. Bluenorthwest Sep 2012 #1

Thanks, I originally was going to say years and then I forgot when I went over WCGreen Sep 2012 #3

I don't have a dog in this fight, being too poor to ever qualify for a mortgage. kestrel91316 Sep 2012 #2

Thank you for this good info... CaliforniaPeggy Sep 2012 #4

The problem is more valuation than cash flow cthulu2016 Sep 2012 #5

Ru Rogh. I hope OP paid attention. lonestarnot Sep 2012 #8

I am sure wcgreen knows more about practical tax issues than I do cthulu2016 Sep 2012 #9

Of course it is based on cash flow... WCGreen Sep 2012 #17

I think we may be talking past each other cthulu2016 Sep 2012 #35

The value of the house is based on the cost of interest. WCGreen Sep 2012 #21

I know a lot of people, ohheckyeah Sep 2012 #6

It kept a roof over my head for the whole Bush administration cthulu2016 Sep 2012 #7

It's the problem with uncertainty. Igel Sep 2012 #14

It won't happen. cloudbase Sep 2012 #10

Tax the shit out of the rich 1st. Close corporate loop holes. xchrom Sep 2012 #11

amen warrior1 Sep 2012 #12

Wait a minute brush Sep 2012 #13

You got me... WCGreen Sep 2012 #16

I am serious brush Sep 2012 #22

I'm presenting facts as to why the Republicans are putting this out as a possible WCGreen Sep 2012 #23

thanks BlueToTheBone Sep 2012 #24

Thanks also brush Sep 2012 #40

I have never understood people who SheilaT Sep 2012 #15

It does two things, it puts more money into the economy because of increasing WCGreen Sep 2012 #19

Not sure I entirely follow you here. SheilaT Sep 2012 #36

Investors in real estate development like to see stability and stability in WCGreen Sep 2012 #39

And there would probably be a lot more stability if SheilaT Sep 2012 #42

But the lower the interest rates available now means more people are paying more WCGreen Sep 2012 #43

as a person without kids, mortgage deduction allowed me to itemize Liberal_in_LA Sep 2012 #32

I've been doing our own taxes for 6 or 7 years with TurboTax. The interest rate deduction mnhtnbb Sep 2012 #18

Of course it is always tied to your tax rate... WCGreen Sep 2012 #20

It's always cheaper for me to use the EZ form instead of itemizing. nt NashvilleLefty Sep 2012 #25

Were going in the wrong direction DJ13 Sep 2012 #26

if this is gonna happen, at least you have to grandfather existing mortgages. unblock Sep 2012 #27

if you... RainbowOverTexas Sep 2012 #29

Black cloud over texas RegieRocker Sep 2012 #34

I'm with you, Rainbow. SheilaT Sep 2012 #37

well then why bother with mortgages at all? just pay cash. after all, you could lose your job. unblock Sep 2012 #38

Deducting interest payments from taxes began in 1913 SOS Sep 2012 #41

Seriously what is this crap? RegieRocker Sep 2012 #28

You know, it does give millions of people a stake in stability. WCGreen Sep 2012 #30

That makes no sense RegieRocker Sep 2012 #33

A couple of things PowerToThePeople Sep 2012 #31