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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (44661)	11/2/2005 1:15:56 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

benwood, I am using someone with a $410k mortgage for this discussion. There is not much chance that this taxpayer, paying $20+k in interest plus probably $5k+ in property taxes is not going to be able to itemize. It is probably true for those poor folks in Oklahoma and their $50k mortgages, they may actually benefit. <gggg> Again, for the bubble areas that I am talking about, there got to be a significant amount of loans above $400k, some substantially above $400k that is going to see their mortgage deduction tax benefit reduced by over 50%. Bottomline, for those homeowners with a small mortgage, is it really going to make any difference? So what if they pay or receive $500 a year? For the homeowners in the bubble area, it could mean $5,000+ per year in new tax. Is that enough to push some borrowers over the edge?