4 ms·
Mortgage interest deduction also inflates home prices, benefitting home sellers and harming everyone else. A home buyer might think they're benefitting, but in
by msellout 11y ago
Mortgage interest deduction also inflates home prices, benefitting home sellers and harming everyone else. A home buyer might think they're benefitting, but in fact the seller simply increased price until the deduction was of net zero benefit for the buyer.
- alttab 11y agoWhat are you talking about? Mortgage interest deduction determines how much money a private person pays in taxes to the federal government each year, relative to their income minus deductions. It does not directly impact home sale price.
- marrington 11y agoThe National Association of Realtors argues that removing the mortgage interest deduction would reduce home values by 15%. There are likely other less biased studies as well but that was the first that I found during a quick search. More at https://en.wikipedia.org/wiki/Home_mortgage_interest_deduction#Opinions_about_the_deduction https://en.wikipedia.org/wiki/Home_mortgage_interest_deducti...