Mortgage interest deduction on the chopping block: My Thoughts

Watch this MSN report: "Heads up, homeowners: Mortgage interest deduction on Trump's chopping block" and see my thoughts below:

The concept of mortgage interest deduction sounds sexy, the harsh reality is that you are paying $1 to save 33 cents. That is a net loss of 67 cents. Granted you get the value of a roof over your head, but that simply minimizes the cost of the roof over your head. Keep in mind as the report mentions, there is a small percentage of people that get to take advantage of the mortgage interest deduction. For people who need more money in their pocket the most (a greater percentage of the population) this will have no change to their tax return. I say, let’s get rid of it!

Trump Wins! You the consumer of mortgages LOSE!

Yes, today there will be a quick drop in rates as the Dow panics and there is a flight to safety.  However in the weeks and months following you will see long term rates go up by .50 to 1.0% as mortgage backed securities and other bonds go out of favor with investors.  Trump has made it clear he is going to get this country's financial house in order and to do that, we need to make interest on the money we borrow and borrow less.  Long term (decades) this could be good for you as a citizen of the United States.  Short term (next 8 years) we will see rates go up and the cost of borrowing for your home will be more expensive.

My advice, if you are thinking about refinancing LOCK TODAY!  If you are thinking about buying in the near future move your timeline up. Rates will be higher in 3-6 months and you will not be able to afford as much.

Please contact me: http://www.cornerstonemortgage.com/ChrisScheer/