Mortgage Interest Deduction Is Good for Us All

By on 26 November, 2012 in Real Estate, Sandra Nickel with 1 Comment

A lot has been written recently about the effect of possible regulatory changes on the residential real estate market. But none has greater potential to do great harm than the must-discussed elimination of the “sacred cow” mortgage interest deduction.

With today’s mortgage interest rates at an historic low, it’s easy to forgot how this simple deduction—one available to everyday taxpayer homeowners—has made an immense difference in the quality of life in these United States of America. This is a difference that I really don’t believe any of us is willing to sacrifice.

No matter where one sits in the political spectrum, be it radical left, reactionary right or smack dab in the middle, the sentiment is the same: homeownership is good for all. Documentary evidence abounds that high school graduation rates are higher, divorce rates are lower, crime is less problematic and families’ financial futures are immensely brighter among homeowners than among renters.

If you are among the Midtown Montgomery homeowners fortunate to have one of today’s low interest rate loans on a relatively small amount, maybe your mortgage interest deduction isn’t all that large. But tax policy is notjust for  us locally but for all areas of our country, including those that are extremely high cost. And not just for today but for the long term, and—trust me—in the long term, interest rates are going up. How far up is anyone’s guess, but one of my trusted advisors says that near or at double-digits could be the norm in 3 to 4 years.

As a long-time Realtor in the Midtown Montgomery market, I clearly remember a time when we counseled would-be buyers on how to calculate the interest they’d pay yearly on a home loan in order to claim additional payroll exemptions and increase their take-home pay. Often, that was the difference between their achieving their dream of homeownership and staying stuck paying, in monthly rents, for someone else’s real estate.

So no matter where you fit into the political spectrum, please become knowledgeable about the benefits to our nation of the mortgage interest deduction. Then tell your Senator and Congressman that it’s not a “sacred cow” but good for us all.

And blessed Thanksgiving to you.  I am thankful to have you as a reader!

Sandra Nickel has been listing and selling residential real estate for over 29 years, most with an intense focus on Montgomery’s Midtown neighborhoods. Sandra serves on the Mid-Alabama Coalition for the Homeless, the Cloverdale Business Coalition, Historic Southview, the Volunteer and Information Center, Landmarks Foundation and her own neighborhood Garden District Preservation Association.

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  1. Jay Croft says:

    Amen, Sandra!

    Problem is that the current Congressfolk from our area bow to the Tea Party fanatics, Grover Norquist, Karl Rove, and to their own wallets.

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