Should the mortgage interest deduction cap be lowered?

  • The National Low Income Housing Coalition (NLIHC) is suggesting that changes be made to the current mortgage interest deductions for people whose mortgages exceed $500,000.
  • The rationale for this proposal is that mortgages higher than $500,000 are rare in the United States and even rarer for minority borrowers.
  • The proposal would alter mortgage interest tax deductions and the portion of a mortgage eligible for tax breaks.

The National Low Income Housing Coalition (NLIHC) is on a mission to give low-income people better access to affordable and decent homes, and you might say that the housing advocacy group is taking a Robin Hood approach toward achieving that goal.