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Once the untouchable tax -- mortgage interest deduction may be on the chopping block -- the economy falls off the fiscal cliff.
So what does this mean for you and our nation's -- and housing recovery.
Rodney Anderson is the executive director of supreme lending -- cancer.
-- -- afternoon Lori hi there so -- the mortgage interest deduction synonymous right with terms like sacred cow untouchable.
But that's changing now right because of our budget crisis.
-- -- we knew several years ago that they were gonna have to address the mortgage interest deduction.
And now it looks like it's at the forefront of the fiscal -- but what we need to remember here is that housing market is already in.
Eight troubled stage Ben Bernanke last week -- Mortgage lending guidelines are overly tight so -- in that area right now that we know we need to get rid of the deduction but how do we do it we have -- -- -- So are you saying that -- -- just coming here with this point are you saying that if we get rid of this deduction it could for war.
To your point very vulnerable recovery mean just today we got the mortgage apps which were down from 22% from the prior -- new home sales were down when they were expected to rise.
Yeah -- could actually hurt the short term it could hurt it long term I don't believe it all heard it and the reason teenage years ago we were able to write off credit card interest we -- able to write off car loan interest.
Well years after that were still charge and on credit cards were still.
-- -- Cars the same things is gonna happen in housing but a lot of people are asking -- How do we do it so you basically need to do is in the structure is get rid of ninety person Arden.
Every -- every one year get rid of ten per cent of the mortgage interest deduction.
But not just for the wealthy for every single homeowner in America.
Therefore everybody feels this pain so a gradual reduction of the benefit what -- the length of loans.
Do you think people you -- Maureen and I just being -- short term mortgage analyst okay 30% of Americans right now that are refinancing.
Are taken a fifteen year marked one year alone.
This serves as getting -- -- mortgage interest deduction for a lot of these people and the reason being is the more you pay down your principal.
The less interest you pay the less you write off.
People don't like to be told what they have to do so -- to shorter term mortgages is definitely a solution.
That will speed this process up and that's why it's really important that we keep.
Mortgage rates low for the next two or three years so what or holly -- -- harp loans home affordability refinance program -- On every loan that's a harp blown should be required to be shorten the term -- fifteen or twenty years.
I'm concerned about the politics you know what's the likelihood that.
The wealthy Americans -- the Republicans representing them okay with say it's easier to digest this.
You know higher tax rate or whatever or when I'm I've got it backwards iPod just let it either -- except this decide deduction -- -- is except a higher tax rate.
Well I think the Republicans need to watch out on this deal.
Because for example in the Dallas Fort Worth area where I'm from some of the key Republicans.
They are in areas that are higher income areas you cut it down for everybody.
I'll tell you what when the husband's and -- go to the voting polls they're gonna Nixon.
-- may be one of the biggest turnovers we've seen that the Republican Party will ever happened two years.
If they don't lay off this mortgage interest deduction.
We shall see Rodney Anderson thank you.
Thank you has has leader.
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