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\nHe added, \u201cWe think those are both very, very important.\u201d<\/p>\n
Tax incentives<\/h2>\n
A thriving housing market absolutely depends on incentives provided by mortgage interest deductions (or MIDs).<\/p>\n
An attractive MID enables homeowners to reduce their taxable income by essentially writing off the interest paid on the loan.<\/p><\/blockquote>\n
In the U.S., the mortgage interest deduction is currently capped at loans of $1 million for joint applications ($500,000 if filing separately), for their principle residence or second home, or the first $100,000 on home equity debt.<\/p>\n
The interview comes on the heels of President Trump\u2019s address to Congress, promising \u201cmassive tax relief\u201d for middle class Americans. Not touching the MID should certainly be included as a part of that promise.<\/p>\n
No worries,\u00a0amigos<\/h2>\n
Mr. Mnuchin\u2019s interview should put to rest concerns over possible changes. As we noted last year<\/a>, the uncertainty surrounding the fate of MID was a cause of deep concern in the housing market throughout the Presidential election cycle.<\/p>\n
Candidates from both parties had wildly varied plans to cap or get rid of MIDs altogether.<\/p><\/blockquote>\n
We\u2019ve argued before<\/a> how President Trump\u2019s win bode well for homeowners and realtors.<\/p>\n
Much of it was to Mr. Trump\u2019s own real estate pedigree, as noted by NAR Senior Vice President Jerry Giovaniello at last year\u2019s Realtor Party (RPAC). However, Trump\u2019s rhetoric of \u201csimplifying tax codes\u201d may often be a euphemism for \u201cgoing after homeownership incentives\u201d Mr. Giovaniello noted.<\/p>\n
In fact, the confusion persisted by the Trump\u2019s own cabinet.<\/p>\n