Stephen Kanitz

Personal Responsibility and the Housing Bubble

Mortgage Interest Tax Deductions rings a bell ? Would you buy a house knowing that nearly 38% of NOMINAL interest rate is tax deductible. If NOMINAL interest rate is 6% and inflation 4%, REAL interest rate is 2%. So run the numbers again and you discover that 114% of the 2% interest rate comes for free. Would you leverage ?
What mortgage pedllers did was explain these numbers better than I may have done, over and over again.