Hot news from AZ Home Help:
Posted To: Voice of Housing
Peter J. Wallison's recent article in the Wall Street Journal on government support in the residential housing market, " What's So Special About the 30-Year Mortgage ? ", is an interesting academic exercise but it has no relevance to the reality of the U.S. housing market. While it is true that, for many years over the life of a 30-year loan, most of the payments go toward interest payments and not principle, if we were to remove the tax deductibility of the interest paid (regardless of the term of amortization) as some have suggested, we would remove another 33% of value from the American homeowner, based on the marginal rate at the Federal level of 28% and the average State and local tax rate of 5%. Removing the backstop of federal protection for the 30-year loan to reduce the amortization...(
read more)
Source:
www.mortgagenewsdaily.com - For more real estate news visit our website at http://www.AzHomeHelp.com
No comments:
Post a Comment