[quote=SD Transplant]A quick note from the NAR chief was stating that the elimination of the MID will shave off about 15% of the current prices…….we shall see[/quote]
If interest rate keep dropping, the value of the MID drops.
Consider a $100K house with a 8% mortgage and 33% tax rate.
The interest is 8000/year. And the value of the MID is 2650 a year.
At 4% the mortgage is 4000 a year and the MID is worth 1300 a year.
As people payoff their houses, the MID decays anyways, so if you set the MID to cap at the median house and and decay over 10 years, it will have a lower impact.
Say you can apply 100 percent in the first year, and then 90% the next year
And 81% the next year,,,,
People won’t price that in. They will figure their incomes will increase
