As you may know, the debate continues over the mortgage interest deduction (MID). Some legislators want to eliminate the MID in efforts to reduce the deficit. However, many others believe the MID is vital to the stability of the American housing market and economy.
The ability to deduct the interest paid on a mortgage can mean significant savings at tax time for many Iowans and Americans. For example, a family who bought a home this year with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file next year.
According to the National Association of REALTORS®, the MID benefits primarily middle and lower income families. Almost two-thirds of those who claim the MID are middle-income earners, and 65 percent of families who claim the MID earn less than $100,000 per year.
The bottom line is, issues like the mortgage interest deduction don’t just affect people who own a home – they affect everyone as home ownership shapes communities and strengthens the economy. Public policies that support home ownership help families in our communities achieve their dreams of home ownership. If this issue is important to you, contact your legislator today. For more information, visit HouseLogic.com.
Sources: National Association of Realtors®, Iowa Association of Realtors®, Houselogic.com
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