Do You Know About the Mortgage Interest Deduction?
The home mortgage interest deduction is vital to the housing market. The MID saves the average home owner thousands of dollars every year. It also makes the dream of home ownership a reality for America’s middle class.
How does the MID work?
In general, any home owners who pay U.S. taxes and who itemize their taxes can deduct mortgage interest attributable to primary residence and second-home debt totaling $1 million, and interest paid on home equity debt of as much as $100,000.
Why is the MID good policy?
More than 60% of the families who claim the mortgage interest deduction have household incomes between $60,000 and $200,000. The MID enables the dream of home ownership in millions of middle-income families while also guaranteeing that buying a home will be a good investment well into the future. With increasing home ownership, home prices are more stable for those who already own homes, ensuring a steady stream of new buyers and making home buying a smart, safe investment.
We at the NATIONAL ASSOCIATION OF REALTORS® are working hard to make home ownership more affordable for more Americans every day. Sign up today and receive more information on the MID and other benefits of home ownership straight to your inbox.