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Who Is using the Mortgage Interest Deduction MID

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Real Estate Agent with First Team Real Estate Bre # 01146880

Who Is using the Mortgage Interest Deduction MID

One of the benefits of owning a home is that you get a Mortgage Interest Deduction. Here is a brief snapshot of who's using Mortgage Interest Deduction.

Those households headed by persons between 35 and 45 years of age are the largest takers of the mortgage interest deduction, this is from National Association of Realtors research. Based on Internal Revenue Data from 2008, these households take an annual average deduction of $13,829, compared with $9577 for households headed by persons 65 and older and $8799 for households headed by persons under 26. Reasons for this? Typically, home owners in the 35-45 bracket still have many years left to go on their mortgage, and a relatively high proportion of their monthly payments goes to interest. Also, their houses tend to be larger than those of the very youngest home owners, so their mortgage and interest are higher.

Here is the breadown of Mortgage Interest Deduction by Age.

All returns             $12,160

Under 26               $8799

26-35                   $12,300

35-45                   $13,829

45-55                   $12,374

55-65                   $11,099

65 and over           $9,577

Source, NAR reserach using 2008 IRS data.

 

Show All Comments Sort:
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

I was not aware of many details - thanks for sharing Mahesh. Hopefully this will stay...

Dec 22, 2010 03:23 PM
Mahesh Mike Patel
First Team Real Estate - Anaheim Hills, CA
Call Me And Consider It Done!

AR is a great place to know the latest trends and facts...

Glad I joined AR>

Happy Holidays.

Dec 23, 2010 04:17 AM