Homeowners everywhere should pay close attention to the changes our government is proposing to the Mortgage Interest Deductions. The Federal government is once again looking for ways to generate additional revenue; it is no secret that in the past legislators have put this sacrificial lamb on the chopping block and it seems they are at it again.
While the benefits of home ownership are many, the interest deduction is very important to homeowners. It seems that some people even think that doing away with the deduction with help jump start the housing market. Some people will want to beat the government to the finish line by buying now assuming there will be some kind of clause for existing owners. Really?
The National Association of Realtors® recently conducted a survey asking the following question:
How do you plan to use your mortgage interest deduction tax savings this year?
- 35% Home improvements
- 32% Pay off bills
- 23% Deposit in savings
- 8% Family trip
This potential change affects buyers, sellers and current owners.
We all need to pay attention!