Jon Smirl

Government's New 5-Year ARM at 2%

Why do they need to go through all of this hassle? Allow the temporary tax deduction of 200-300% of mortgage interest paid on pre-existing loans for everyone. Slowly reduce this ratio until we are back at 100% deductibility in five years.

Mortgage deductions are capped so this doesn't help billionaires. People with fifteen year old mortgages are paying little interest, it is almost all principle repayment.

But wait, I know why they created this complex scheme - there's political power in picking who gets 'lucky' and who gets foreclosed.

The families really being hurt are the ones that put down large down payments and have lost all of it.

People who put little to nothing down are just renter equivalents being evicted, it happens every day. Where's the outcry over real renters being evicted and losing their homes? The only difference is the writing on the paperwork.

Foreclosure Moratoriums: It's Time to Get Real

I was so stupid for not buying that $20M ocean front house for nothing down! With cram downs, modifications, assistance, etc I'm sure we could have modified the mortgage until I was able to afford it. I would like to thank all of the tax payers for helping me out by providing this necessary subsidy to keep me in my home.

Solve the Housing Crisis by Rewarding the Prudent

A simpler way to implement this is to allow the tax deduction of 150-200% of mortgage interest paid, not accrued. That would achieve the same effect without needing to refinance everything. Limit the deduction to pre-existing loans on your primary residence.