Cutting the deficit may cut your home tax savings

Currently, 75 million Americans are eligible to deduct the interest paid on their home mortgage from what they owe the government at tax time. Those who do save an average of $2,078 per year. … The National Commission on Fiscal Responsibility and Reform proposes to change the mortgage interest deduction, which saves home owners a total of $80 billion every year in taxes. The commission would replace the deduction with a 12 percent “mortgage interest credit” for all home owners. That’s less than the average 17 percent credit homeowners currently claim and would increase federal revenue around $300 billion over 10 years.