We have heard rumors that the Obama administration has discussed the possibility of getting rid of the Mortgage Interest Deduction (MID). “Say it ain’t so, Joe”.
According to the USA Today, the government spent about $80 billion last year to back up the mortgage interest deductions. One housing specialist says it wasn’t worth the money because the tax break only goes to the wealthy???? Does this sound familiar?
For those in the $100,000 – $200,000 income range the MID claimed was almost $14,000; meaning the value of the write-off would be $3,500
For those making $75,000 – $100,000, the deduction was around $11,000; resulting in a savings of $2,800
For those making $50,000 – $75,000, the average deductions was around $10,000 with a savings of $2,500.00
Through the terms of 17 presidencies, the MID has brought remarkable stability to the housing market.