Massachusetts Home Buyer Guide

According to some political commentators speaking last month at the 2012 Realtors Conference & Expo, the mortgage interest deduction (MID), though not specifically targeted so to speak, will likely emerge altered from the deficit talks in the nation's capital, Realtor Magazine reported November 12, 2012.

Will this effect home buyers decisions related to real estate?

The predictions came from Charlie Cook, of the Cook Political Report and National Journal White House correspondent Major Garrett. 

"'I don’t think MID will be targeted' for cuts by itself to help address the country’s deficit, but 'it’s going to get affected, it’s going to change,' Cook told thousands of Realtors."

Cook predicted the cap on itemized deductions that Republican presidential nominee Mitt Romney flouted during his campaign could very well be the template Congress looks at to help raise revenue. "Whether it’s based on a dollar limit or a percentage limit, itemized deductions, including MID, will be affected, 'no doubt about it,' Cook said. 'The world is different.'"

Garrett believes Congress is under pressure to avoid the so-called "fiscal cliff" when taxes will increase by hundreds of billions of dollars, without a deal between the White House and Congress.