Homeowners have reasons to be concerned as the debt ceiling debate drags on

NEW YORK - Homeowners have a lot at stake in the political showdown over the country’s debt ceiling.

One of the major concerns for many is the fate of a valued tax break. The benefit, which allows taxpayers to deduct their mortgage interest payments, is used by 35 million households.

Now lawmakers have proposed limiting the deduction as part of an agreement to raise the government’s borrowing limit to avoid a default after the Aug. 2 deadline. But that isn’t the only concern for homeowners and prospective buyers as the negotiations heat up in Washington.

Even if lawmakers strike a deal by next week’s deadline, there’s still a chance the government’s credit rating could be downgraded. That raises the prospect of higher mortgage rates, meaning those who’ve been holding tight for home prices to fall further may feel that time is running out to take advantage of low rates. .............(more)

The complete piece is at: http://www.boston.com/business/personalfinance/articles/2011/07/30/how_the_debt_talks_could_affect_homeowners/

If you have a variable rate mortgage, then it may change and the amount depends on the mortgage agreement. But you really shouldn't have a variable rate mortgage.

adjustable rate mortgages, to give a better profit to the mortgage companies and banks.

:grr: The uber rich have no mortgages, so it doesn't effect them in the least.

:shrug:

TPTB are taking away that deduction incentive.

So current homeowners will bear the brunt of this.

I referred to future home buyers. As for the deductions, both side seem to want it gone so I think it will go. My home is paid off in 3 years and I have a locked in loan.

I've had mine for 16 years and it has stayed lower than when I purchased the home; it's almost half of it's initial rate right now, but that could change very soon. :-(

:hug: I really hope these people do the right thing.

millions MORE for them to play with. $400.00 crab dinners, $1,200.00 bottles of wine, five million dollar birthday parties, two hundred million dollar yachts...meanwhile it's our very LIVES that are being put on the line here and they really don't give a damn. I can't even begin to wrap my brain around that kind of inhumanity. If I had billions of dollars the only thing that would really upset me is that I couldn't help EVERY living thing that needed it, not paying a mere 18% tax!

Yes, it's very depressing indeed. :hug:

have it...

Bless you for keeping his spirit alive...

His life should have been long and filled with love and laughter.

I think one of the prime reasons for buying a house today is the ability to deduct mortgage interest. In the article it stated that may be reduced as part of the debt reduction crapola. BUT, it won't effect those with the Bush tax cuts as I assume many of those people have no mortgage. I don't know that for certain but......

I grow more concerned by the hour.

Thanks for posting this article.

mansions outright with cash. This is just another way to squeeze working people for the taxes that the idle rich won't pay.

Mostly older folks who've paid them off.

especially with the tax deduction, it's the cheapest source of capital for them to play with elsewhere.

rich people like to play with other people's money.

Would be a guaranteed downgrade in our rating. Personally, I'm amazed we weren't downgraded a long time ago.

raising the debt ceiling without ending the Bush tax cuts is far more of an issue than cutting spending.