@twshield i wouldnt say home ownership in general because the median price of a home is well below the cap. I would say in the long run it will reduce the demand for houses in the jumbo loan category.

@twshield no. But when you categorize it, or make a broad statement ,it can be misleading if one is not careful.
So I am agreeing it may in the short run deter ownership of houses in the 820k+ price range but that the majority of homes are not in that grouping.

@twshield No it's a price discriminatory factor to deter a buyer and the fact you still get the first $750,000 of interest as a deductable means that it has an elastic effect on higher priced homes. That means the effect is stronger the higher the price of the home is away from $825,000. So if you owe a million on a property at 5% interest you can't write off $50,000 you can only write off $37,500 but if You owe $800,000 youre only losing $2500 in deduction. In either case you're probably in the 24% or 32% range which means this loss if deduction translates into a $600-$2400 increase in taxes owed for a house that you owe 800k-1,000k on. So yes there is a deterence but no its not on the market as a whole. Second I'm not suggesting rural areas don't have million dollar homes. I'm suggesting that higher populated areas have a higher demand as a result overall prices are higher and you see more houses over the 825k range than you do in rural areas.

@twshield Again not as a whole and I would call it more a nudge than a full blown deterrent. Because the people affected by it are seeing an increase in their taxes that is roughly less than 1% of their total income. Nudges can be powerful in the long run though. You would see less homes in the Jumbo category carrying large loans.

But instead of going in circles you can say it's a deterrent for home ownership.
I'll say it's a nudge that only affects 13% of Americans at most. All of whom are in the top earners category.

@twshield Sure call it what you want. Remember though saying things that are purposefully misleading is the same as lying. The fact you now know and understand its applications but say it deters home ownership without specificity is what it is.

@Marine, I can't deduct my medical? That's over a third of my damned income.

@freeofgod Not any more. Removed by trumper as a deduction to pay for wealthy tax cut.

@Marine , there is no symbol to show my total disgust for this. But thanks for the answer.

@freeofgod I agree with you and I cannot find a word that describes trumper i just use ^%$#*&

@Marine , I can think of a lot of words to describe him but they would amount to a never ending string of curse words ;D

@freeofgod Right on

@twshield That's wishful thinking but probably too much to hope for.