Skimpflation: A reason inflation is worse than the government says it is

Re:Skimpflation: A reason inflation is worse than the govern... by lotsofpulp on Monday November 01, 2021 @06:46AM (#29065049)

> middle class: I make money on my mortgage. I see my 1.22% 20 years fixed mortgage melt away against a salary that is raising with inflation. Plus I get rewarded by government with a tax deduction. Similar story for our rental.

The mortgage interest tax deduction only applies if you itemize, which literally 90% of people do not do as of 2019 IRS statistics. Effectively, there is no mortgage interest tax deduction for middle class since the 2017 tax cut ACA jobs act.

[ Parent | on HN ]

Re:Skimpflation: A reason inflation is worse than the govern... by markvdb on Monday November 01, 2021 @07:06AM (#29065208)

I don't live in the US. Plenty of places have some form of mortgage fiscal stimulus. Even without the fiscal advantage, I would still be making money on this.

[ Parent | on HN ]

Re:Skimpflation: A reason inflation is worse than the govern... by disgruntledphd2 on Monday November 01, 2021 @07:51AM (#29065514)

> see my 1.22% 20 years fixed mortgage melt away

Wow, if you don't live in the US, where are you getting a 20 year fixed rate?

Honestly just curious as I thought those were really only a US thing.

[ Parent | on HN ]

Re:Skimpflation: A reason inflation is worse than the govern... by markvdb on Monday November 01, 2021 @11:14AM (#29067741)

The mortgage is in Belgium. Friends have even lower fixed rates. Some others have negative interest rates on their adjustable ones. Their bank literally pays them.

[ Parent | on HN ]

Re:Skimpflation: A reason inflation is worse than the govern... by disgruntledphd2 on Tuesday November 02, 2021 @05:51AM (#29079045)

Wow, I'd heard about that but it seems so alien to me here in ireland (we get at best 2% ten year fixed, and that's only under certain circumstances).

Mind you, it's literally impossible to get evicted from your primary home here, which is presumably what drives the differences.

[ Parent | on HN ]

Re:Skimpflation: A reason inflation is worse than the govern... by tekknik on Tuesday November 02, 2021 @11:34AM (#29082801)

> Their bank literally pays them.

How does this work? Do they get a free house and a check cut monthly? Or is the mortgage cheaper than what it would have been?

[ Parent | on HN ]

Re:Skimpflation: A reason inflation is worse than the govern... by lotsofpulp on Monday November 01, 2021 @07:23AM (#29065317)

My bad. I did not know anywhere else offered mortgage incentives. Chalked tax deduction up to being uniquely US way of implementing regressive taxes.

[ Parent | on HN ]