Many home buyers I’ve worked with, when buying Columbus Ohio real estate, do so in part because of the mortgage interest tax deduction incentives for owning a home. Currently, you can deduct the the mortgage interest you pay each year on your income taxes.
Obama’s latest spending plan, as released on February 26, 2009, seeks to change the Mortgage Interest Deduction by reducing the amount of the home mortgage interest deduction for families earning over $250,000 in America. The National Association of Realtors® (NAR) believes this small section of the sweeping US Federal budget plan has the potential to become a major impediment to a recovery in real estate markets across America.
The NAR is 100% opposed to modifying the current home Mortgage Interest Deduction and is preparing to use its formidable array of resources against its enactment.
The The National Association of Realtors® is concerned this proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values across the USA. If enacted, this proposal could lead to a new round of price depreciation and cause greater distress on bank balance sheets as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is even resolved.
The NAR is launching a multiphase plan of action to eliminate this provision from Obama’s spending plan. NAR will be expressing concerns directly to President Obama, all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.
The housing market is struggling enough and I just cannot understand why any lawmaker feels this plan is a good idea, especially in light of the effect the housing market has had and continues to have on the economy. I’m sure many would agree there are plenty of other ways the government could cut spending instead of continually taking more money from Americans.
As NAR continues to update REALTORS® across the nation on the status of the home mortgage interest deduction, I’ll share updates here on my Columbus Ohio Real Estate website.