NAR: Defending the Mortgage Interest Deduction

Few consumers are aware that, In 2005, the President's Advisory Panel on Tax Reform recommended a few things that would cause the cost of home ownership to rise:

1. Convert the mortgage interest deduction into a tax credit, significantly reducing the amount of a mortgage that would be eligible to receive tax benefits.

2. Eliminate the mortgage interest deduction for second homes and for home equity loans and lines of credit.

3. Repeal the deduction for property taxes.

The National Association of REALTORS® has been fighting these issues since the proposals were first announced. Their stance is that this would cause the value of homes to fall while prices would increase. The battle is still waging, so I wanted to make sure you were aware since it affects all real estate investors, buyers, and sellers.

Read more about the entire issue on NAR's website. Link: NAR: Defending the Mortgage Interest Deduction.