The Mortgage Interest Deduction (MID) is a remarkably effective tool that facilitates homeownership.

Community Impact: It’s not just for the wealthy

  • In 2013, there were approximately 1,024,416 homes in Minnesota with a mortgage according to the US Census. The Minnesota Department of Revenue has identified 647,200 filers in 2013 or approximately 2/3 of all homeowners who itemized and used the mortgage interest deduction. (Fig. 1, right)
  • Median value of homes with a mortgage equals $188,700.
  • Wealthy individuals can use cash for their home purchase and will not bother with a mortgage.
  • Nationally, more than 70% of homeowners utilize the deduction over the time they own their home. (Fig. 2, below)

  • According to the National Association of REALTORS®’ research, eliminating the homeowner tax benefits could cause a 15% decline in the value of homes. (Fig 3, above)
  • Many statistics used in the debate cover what percentage of Minnesotans received the MID benefits – while this presents a lower number, their data includes renters, nursing home tenants, students, etc. In other words, it includes filers without a mortgage!

Public Opinion

In a December 2014 poll: 

  • 70% of respondents were opposed to eliminating the Mortgage Interest Deduction.
  • 82% said the MID lowers the tax load for working and middle class families and that it helps make homeownership more affordable and easier for Minnesota families to buy and stay in their home.
  • 79% said homeownership is the foundation of strong families and healthy communities and that we should be doing everything we can to encourage homeownership and not make it harder.
  • 78% said the deduction is one for the few remaining tax breaks available for working and middle class families.
  • 76% said the MID helps families realize homeownership, which is the foundation for a healthy middle class.
  • 69% of respondents will factor a legislator’s record on protecting homeowners into their election decisions

Please sign the petition to tell Legislators that Minnesota Homes Matter! ›