By Marcie Geffner - Virginia Association of Realtors
The federal mortgage interest deduction, known as "the MID," is one of the greatest means to encourage homeownership and promote healthy housing markets not only in Virginia, but throughout the nation. That's why all homeowners, including those who don't take the deduction, should be concerned about recent proposals in Washington, D.C., to cut back this important benefit.
Homeowners who don't have a mortgage or don't itemize their federal tax deductions might well question the MID's value. After all, if you own your home free and clear, you don't pay any mortgage interest that you can deduct, and if you take the standard deduction in lieu of itemizing, any mortgage interest you pay won't affect your tax bill.
But the fact is that homeowners who don't take the deduction still benefit from it.