As part of the attempt to fix our nation’s current economic issues and help pay the debt, federal officials are considering doing away with the real estate mortgage interest tax exemption. This is an exemption that has been in place for around 100 years. Anyone who owns a home knows the benefit that it brings. It helps people save on taxes and is a motivating factor for people who are considering purchasing a home. There is a possibility that this exemption will soon disappear, leading some people to wonder what the point would be purchasing a home in today’s housing market. With home prices generally stagnant or falling around the country, there seems to be little incentive to buy a home, which has always been a large part of the American dream.
Not only might we see this tax exemption disappear, but there are further discussions about making it a requirement to put 20% down when purchasing a home. Obviously most people in this country, especially young families starting out, are unable to have accumulated enough savings to do that. The thought is that this would lead to fewer foreclosures and lead to more stability in the housing market. If you currently own a home, or are considering purchasing one, these two issues are something to think about and keep an eye on. I’ll do my best to keep you updated on the status of these discussions.