[quote=patientrenter][quote=briansd1]It seems to me people with varying income from year to year would not benefit as much from the mortgage interest deduction.
So those people should be more price sensitive when purchasing houses.
Since irregular income is less stable, those borrowers should be required to pay higher interest rates and come up with higher down-payments.
[/quote]
Bingo! Sometimes commonsense is the right answer. Of course, that has nothing to do with what happens in our govt-guided home financing system.
[/quote]
Bingo? Why is self-employment (“irregular income”) less stable than having a W-2 job? I see hundreds of thousands of W-2 jobs disappearing in the world of banking and finance and my work (I’m self-employed) – part of which is financial consulting, where I’m now taking a portion of the job of someone who has been laid off – is getting more lucrative every quarter.
I see the point you’re trying to make, but I’m not sure that it’s correct. Particularly in the current environment.
In fact, I could make the opposite argument. That is, that folks who are used to being self-employed are more resourceful on average than W-2 folks. And that when times get tough, they’ll figure out a way to make ends meet while laid-off W-2 folks aren’t used to hustling to do what it takes. I’m not saying that’s the case, mind you; I’m just saying that that argument could be made.
