Obama’s proposing limiting mortgage deductions to 28% for families earning $250000 or more. For a home priced in the $800000’s with 30 yr fixed, 20% down at 5%, annual interest paid is around $30000 in the first yr and is lesser every year thereafter.A loss of 7% write-off on $30000 amounts to around $200 less savings every month. Seems very less to deter the high earners from making an emotional move such as home buying. Same goes with the capital gains exclusion. Hard to imagine anyone buying a home these days expecting a $250000 gain.
