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>but you’ll never get to 0% as a consumer. Unless we see negative fed rates. Not that I think going so negative we see consumer level 0% mortgages is likely.
by xxpor 7y ago
>but you’ll never get to 0% as a consumer.
Unless we see negative fed rates. Not that I think going so negative we see consumer level 0% mortgages is likely.
- jaggederest 7y agoIronically, much of the tax advantage of owning vs renting is embodied in the mortgage interest tax deduction. If there were no interest, obviously it would be a good deal, but would not have the additional benefit of tax avoidance that it does at present.
- dlp211 7y agoMuch of the tax avoidance from primary residence property has been removed from the tax code already due to the TCJA. Not all of it, but most of it. It also makes no sense to have a mortgage for the tax break. Rentals have depreciation and the interest remains deductible as an expense on them there, so that isn't really an issue.
- aksss 7y agoRegarding tax avoidance from primary residence, what specifically? I can still deduct mortgage interest. Are you talking about not itemizing some home ownership expenses (like what?) because standard deduction increase? Just wondering what I’m missing..
- mobilefriendly 7y agoYou can't deduct it with the new larger standard personal deduction, only if you itemize. The Trump tax bill was a reform made the mortgage deduction moot for about 20 million taxpayers.
- tjomk 7y agoTake a look at Europe with negative rates. Every bank has a statement that if the rate goes below 0 your effective rate will still be above that.
- steveeq1 7y agoif the consumer rate is 0%, what is the stop the consumer from borrowing an unlimited amount of money?