• Welcome to OGBoards 10.0, keep in mind that we will be making LOTS of changes to smooth out the experience here and make it as close as possible functionally to the old software, but feel free to drop suggestions or requests in the Tech Support subforum!

DOMA ruled Unconstitutional by Federal Appeals Court

Wakelaw2006 said:
Don't get BSD started on the mortgage interest deduction (even though he can now take advantage of it). I feel like he would feel like his life was complete if he managed to get rid of the mortgage interest deduction.
Click to expand...

C'mon, man. I was trying to get a good rant going here. Still I agree.
 
The problem with getting rid of the mortgage interest deduction is it would kill the housing market for at least a decade (probably longer). The only way to do it would be to gradually phase it in over a 20-40 year period.
 
Tuff, that's because that's the way it has been and prices reflect that. Prices in our market include the benefit of mortgage interest deduction. If you eliminate all at once, you will drive down the value of homes.

If we did this now, millions more homes would be under water which would be devastating to the market.

If this is the goal it has to be done in stages.
 
I'm trying to find the ill effects of the 1986 axing of all other interest deductions can you help?

fredgraph.png
 
TuffaloDeac10 said:
BLAH BLAH BLAH other countries' housing markets are just fine without the mortgage interest deduction.
Click to expand...

Most other countries don't have hundreds of thousands of toxic mortgages outstanding.
 
It sounds like we are basically on the same side. It's about to get there.

About 15-20% of our economy has to do with housing. Any blip now could harm the economy. Part of the affordability factor is including the deduction.

To take it all away at once would impact the prices of homes at a time where te market is trying to rebound. It makes more sense to phase it in than to get rid of it all at once.
 
RJKarl said:
It sounds like we are basically on the same side. It's about to get there.

About 15-20% of our economy has to do with housing. Any blip now could harm the economy. Part of the affordability factor is including the deduction.

To take it all away at once would impact the prices of homes at a time where te market is trying to rebound. It makes more sense to phase it in than to get rid of it all at once.
Click to expand...

Right. It's a simple matter of numbers. The people who can pay their mortgages by the amount of their deduction or less would go underwater if the deduction were to be eliminated. Normally, that wouldn't be that big of a deal, but there are a lot more risky loans out there than there normally would be.
 
TuffaloDeac10 said:
Sounds like an argument against mortgage securitization, especially securitizations based on unsound principles.
Click to expand...

No, it's an argument against allowing lending standards to deteriorate.
 
Edwards and I have been in talks, and I don't want to jinx anything, it looks like I'll be retained to advise him on tax policy for his 2016 bid.
 
And you could take the deduction away from me because I bought a house I could actually afford. The tax benefits, while awesome for me personally, are laughable. Why not permit deductions on credit card interest or the purchase of American manufactured cars?
 
TR1982 said:
Right. It's a simple matter of numbers. The people who can pay their mortgages by the amount of their deduction or less would go underwater if the deduction were to be eliminated. Normally, that wouldn't be that big of a deal, but there are a lot more risky loans out there than there normally would be.
Click to expand...

I don't think anybody against the deduction thinks it should be taken away immediately from existing loans. That's a straw man.
 
Have to phase it out, and not based in income level, because that wouldn't solve the potential problem. And I'd be all for letting people either elect a phase out or to have it remain in full for X years before it goes away completely.
 
You must log in or register to reply here.
Back
Top