Defending the Mortgage Interest Deduction

Defending the Mortgage Interest Deduction

Latest News and Information

May 11, 2011 - NAR President Ron Phipps Appears on Bloomberg Television
He emphasizes the importance of the MID to home owners, housing, and the overall economy.
Watch the video >

March 15, 2011 - NAR President's Podcast: MID Benefits Middle Class
NAR President Ron Phipps discusses how the mortgage interest deduction predominantly benefits the middle class and articulates the need to make state and local lobbying efforts as effective as those on a national level.
Listen >

February 18, 2011 - Why We Value the Government’s Role in Housing
NAR President Ron Phipps responds to member feedback about NAR’s stance on the best way to restore housing markets, discussing both the mortgage interest deduction and secondary mortgage market reform.
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February 18, 2011Rep. Hinojosa: Talk of Changing MID 'Foolhardy'
Realtor® Magazine reports on remarks made by Rep. Ruben Hinojosa at a forum in Washington this week in which he described proposed changes to the popular tax benefit as "misguided."
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January 26, 2011 - President Obama Silent on MID
President Obama's January 25 State of the Union Address made no mention of the mortgage interest deduction (MID).
Read more >

January 19, 2011 - NAR Video: MID Facts: Who's Hurt Most by Curbs?
The vast majority of households that take the deduction are middle-income families, earning either less than $100,000 a year or between $100,000 and $200,000 a year (the typical cut-off point between wealthy and non-wealthy households).
Watch the video>

January 13, 2011 - NAR Asks Members to Cosponsor Resolution Protecting the Mortgage Interest Deduction
California Representative Gary Miller (R-42), along with five original cosponsors have introduced House Resolution 25. The resolution expresses the "sense of the Congress that the current Federal income tax deduction for interest paid on debt secured by a first or second home should not be further restricted."

Representative Miller has sent a "Dear Colleague" letter asking other Members of Congress to cosponsor the resolution. In addition, NAR has also sent a letter to the U.S. House of Representatives asking Members to cosponsor H.Res. 25.

Read the letters> (PDF: 649K) 

January 6, 2011 - NAR Launches MID Calc iPhone/iPad App
NAR created the free MID Calc (available from the iTunes store) for home owners to estimate the tax-savings value of their mortgage interest deduction. Compatible with iPhone, iPod touch, and iPad.
Download the app from iTunes >

Issue Summary: Mortgage Interest Deduction

NAR opposes any changes to current law. Individuals are permitted to deduct mortgage interest paid on mortgage debt of up to $1 million. The deduction is available for interest on mortgages for a principal residence and one additional residence. The $1 million limitation represents the combined allowable debt on two residences. Mortgage interest on up to $100,000 of debt on home equity loans or lines of credit also qualifies for the deduction.
Read the full issue summary document >

Issue Summary: Tax Reform

NAR embraces no single tax reform model such as a flat tax or a retail sales tax. Rather, NAR acknowledges the complexity of the tax system and seeks to assure that tax reforms support the goals of homeownership and freedom to buy, maintain and sell real estate. 
Read the full issue summary document >

Advocacy History

On October 14, 2005, NAR 2005 president Al Mansell issued a letter to the President Bush's Advisory Panel on Tax Reform. The letter outlined NAR's observations and concerns in response to the panel's discussion of the mortgage interest deduction and other benefits associated with owner-occupied housing. 

Read NAR's full letter >
Recommendations of President Bush's Advisory Panel on Tax Reform >