How could removal of the tax reduction on mortgage interest affect the housing market?


It will make our tax expense larger so we can’t afford as expensive a home so home prices will have to come down a little or not rise as fast.

I pay about 16K in interest and property taxes so since I am in a 15% bracket save about $1,500 a year from owing on my home after the standard deduction I would have had anyhow. So it make me able to afford about $150 a month more in a mortgage payment so the house price would need to be about $15K less to have the same affordability.

Leave a comment

2 Comments.

  1. It will make our tax expense larger so we can’t afford as expensive a home so home prices will have to come down a little or not rise as fast.

    I pay about 16K in interest and property taxes so since I am in a 15% bracket save about $1,500 a year from owing on my home after the standard deduction I would have had anyhow. So it make me able to afford about $150 a month more in a mortgage payment so the house price would need to be about $15K less to have the same affordability.
    References :

  2. everyone who has a mortgage will have less cash in hand at the end of the year. Also some people will buy less expensive houses because they will get less of a deduction on their taxes.
    References :

Leave a Reply

Your email address will not be published. Required fields are marked *

*


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>