MID (Mortgage Interest Deduction) Facts You Should Know
NAR Research recently compiled key stats related to the mortgage interest deduction. Pass these along to your members to use in their messaging around the value of home ownership:
• 38.5 million taxpayers claimed a deduction for mortgage interest, deducting a total of $470 billion, in 2008.
• The total tax savings from the MID in the United States in 2008 was $117 billion.
• 42 million taxpayers in the United States claimed a deduction for real estate taxes in 2008, deducting a total of $172 billion.
• The total savings from the real estate tax deduction in the United States in 2008 was $43 billion.
• If the mortgage interest and real estate tax deductions were eliminated, the loss would not be a one-year event; homeowners lose out on these potential savings each and every year. The present value of these lost savings could total $3.2 trillion.
• If the lost tax savings are fully capitalized into the price of houses, the average decline in value in the United States would be 17 percent.