The best part about all of the conversations and debate about the new tax plan is that we are not talking about Russia. This is not a political statement so hold up before you head for the comments section. I can get tired of listening to my favorite song if I keep playing it over and over without listening to something else.
Analyzing changes to the tax code and how those changes will impact the republic is well above my pay grade. But I am a mortgage loan originator by day so the mortgage interest and property tax deductions are close to home for me. So that is where this examination will focus.
There are three changes proposed in the tax plans that target homeownership. The first is a change to the mortgage interest deduction (MID), the second is a change to the real estate tax deduction and the third is a change to the capital gains exemption when you sell your house.
So just what does all this mean for the home buying masses?
Realtor groups and homebuilders fear we may be on the brink of a housing market Armageddon.
Not so fast.
Repealing the mortgage interest deduction regularly makes appearances during political cycles. NAR PAC e-mails urging me to contact my elected officials land in my inbox with links to click and voice my support of keeping things as they are. Media debate rages, political talking heads negotiate and compromise and the result is always the same; no change in the mortgage interest deduction, it stays as it is. Victory is claimed by all sides.