Mortgage

Analyst: Ending the mortgage interest deduction reaps little benefit

Housingwire recently discussed the mortgage interest deduction rate’s uncertain future. However, one analyst with Forbes suggests that ending the mortgage interest deduction would not bring in as much money as people hope.

Richard Green noted that getting rid of the mortgage interest deduction would likely lead to a behavioral response. 

Perhaps more important, households would have an incentive to pay off their mortgage more quickly in the event of the elimination of the mortgage interest deduction.  Less investment in taxable assets would partially offset the revenue gains arising from the elimination of the mortgage interest deduction.

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