Warning: session_start() [function.session-start]: open(/home/content/14/5809414/tmp/sess_f7jo0j91n8a4atv30cn3sq06f2, O_RDWR) failed: No such file or directory (2) in /home/content/14/5809414/html/_comment.php on line 14

Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at /home/content/14/5809414/html/_comment.php:14) in /home/content/14/5809414/html/_comment.php on line 14

Warning: session_start() [function.session-start]: Cannot send session cache limiter - headers already sent (output started at /home/content/14/5809414/html/_comment.php:14) in /home/content/14/5809414/html/_comment.php on line 14
people borrow more when buying a house

people borrow more when buying a house

annchovie01 | Feb 28, 2013 04:32 PM ET jswanstr, that`s at todays interest rates. Many of us who have played by the rules and paid our mortgages even as our homes have gone underwater have been unable to refinance so we are are still at >5% interest rates. We`re the ones bearing the brunt of this disaster while the thieves who took out loans they couldn`t afford are given security blankets and popsickles. A $1000 is 2 weeks takehome pay for someone making $40K/yr. Maybe it`s nothing to you. But for a substantial portion of America it`s not weekend "pizza money" as Obama called his tax increase a few years back. We don`t get vacations once/month and 99 days of golf in 4 years like your lord and saviour Obama. We work for a living out here. So maybe you and your commie corporate shills should take your%2

ckoffend | Feb 28, 2013 04:32 PM ET The whole notion that people borrow more when buying a house so they can get a bigger mortgage interest deduction is: A: a stupid belief as it does not make financial sense or B: only done by stupid people! Let`s say you are one of those stupid people. You can afford a $200,000 mortgage, but instead you get a $300,000 mortgage. Your rate is 4% (simple number). $200K = $8,000 interest. Your $300K = $12,000 interst (1st year, max). Assuming you get to deduct at the 39% rate, you are spending $4,000 extra in interest alone to reduce your taxes by $1,560. If you think that is smart and a good return, you really don`t understand finance and probably shouldn`t buy a house in the first place!

annchovie01 | Feb 28, 2013 04:35 PM ET ProfWatson, Canadians also buy health insurance in the US so they can come across the border and get the care they need. If Canadians are happy it`s because they have the US for a next door neighbor to take care of them.

Takeurhandsoutmypocket | Feb 28, 2013 04:36 PM ET If they get rid of the deduction....my family and I will prob just walk away from our house. Go ahead and attack the middle class........but remember....payback is a B.

annchovie01 | Feb 28, 2013 04:41 PM ET takeurhand, I agree. Any more new taxes and I stop paying my mortgage. it`s just not worth it anymore. Moving to Argentina is looking very good right now. Land is cheap and I could buy a farm/vineyard and be very happy. Socialism is Socialism no matter what flag it flies under. If the US becomes more Socialist than it already is there is no reason to live here any longer. Endless flocks of dove to hunt, great fishing and trophy hunting. Argentina sounds great right about now.

griffbos | Feb 28, 2013 04:49 PM ET Okay folks lets be honest not every home owner gets this deduction you only get it if you itemize instead of taking the standard deduction. thus you need to be able to itemize more than the standard deduction gets you, I say it is time to do away with itemizing and put everyone on the same playing field....

CommonSenPlease | Feb 28, 2013 04:58 PM ET Taking away int deduction is removing the most common tax benefit for the common people. So, according to the story, $83 biilion will add to the tax revenue, but you can bet more than $83 biilion are lost indirectly. Why? The housing industry will suffer b/cos less home purchases lead to no big ticket items purchases like furniture, building materials, TV, home appliances, etc. Billions are lost in sales tax, manufacturing jobs, construction jobs, retail jobs, and related jobs. Only the super rich will have great tax benefits - low tax rate on capital gain tax like stock option, stock, divident. That will encourage even more shifting of their income to off-shore accts, investment in foreign operations (create jobs outside US) and hide assets overseas to pay even less tax. This attitude fee

CommonSenPlease | Feb 28, 2013 04:59 PM ET This attitude feeds on itself. Well, it looks like what you don`t see cannot hurt you. Go ahead, eliminate interest deduction.

GenerationX | Feb 28, 2013 05:00 PM ET Super Rich Hide $21 Trillion Offshore, Study Says According to an early report on the study in The Guardian, Henry`s research shows that at least ¬£13tn [$21 trillion], perhaps up to ¬£20tn [$31 trillion], has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry puts it, ¬€¬œprotected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy¬€. forbes/sites/frederickallen/2012/07/23/super-rich-hide-21-trillion-offshore-study-says/

GenerationX | Feb 28, 2013 05:03 PM ET The wealthy elites want us all to pay the price for what they did to cause the 2008 meltdown with their casino gambling and the resulting $16 trillion bailout (interest for 4 years included). They should have been held accountable and not been bailed out. Then our national debt would be a mere $1 trillion and we wouldn`t be having these discussions. Where is our Ferdinand Pecora?

Start a Conversation - Add Comments

Your Comment: ( Please enter all fields and security code. )

Word Verification:

Latest Comments

Homes are INDEED an investment - PSAGuy Mandor
March 11, 2013
Not true....Homes are INDEED an investment. They provide other benefit...such as tax benefits that make them truly investments. Not investments that ... - by IAElaine

Pending Home Sales Fall Due to Dwindling Supply - BrianBallsOfSteel | Jan 28, 2013 10:03 AM ET Now this number must be true...if it was good, it would have been FAKE!

debtslave | Jan 28, 2013 10:09 AM ET does CNBS actually proof-read... - by DianaB

New Nightmare for Home Builders: Not Enough Skilled Workers - geraldvaughn | Dec 7, 2012 12:03 PM ET That`s right sell these PIG insurance companies stock as its going no where quick. These are the WORST BAD FAITH INSURERS IN AMERICA**AIG/21st Century Auto/21st... - by Will49d

Waiting for an asset to appreciate - BaronAstor | Jan 22, 2013 02:56 PM ET MandyBrazil | Jan 22, 2013 12:31 PM ET Huh? Waiting for an asset to appreciate before selling it is fraud? You seem to have your thoughts on economics a bit skew... - by BPdz

housing inflation is over five percent - duck33 | Jan 29, 2013 09:50 AM ET Does that mean the fed can quit devaluing benny bucks housing inflation is over five percent?

FACTcheck | Jan 29, 2013 09:50 AM ET Are they ever goin... - by 6PJ

people borrow more when buying a house

Real Estate Agent Directory

Are you looking for a real estate agent in your area? At housing news blog, you can search for your local realtor and real estate service by using our agent search features.

Real Estate Agent Directory

Get listed!

Are you a real estate agent? Get listed for free with us! Complete a real estate agent profile form and get listed in a few days. Click on the link below to get started!

Free agent profile!

Warning: Unknown: open(/home/content/14/5809414/tmp/sess_f7jo0j91n8a4atv30cn3sq06f2, O_RDWR) failed: No such file or directory (2) in Unknown on line 0

Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct () in Unknown on line 0