The Hidden Cost of Your Mortgage Interest Deduction

We pull back the curtain on one of the most misunderstood provisions in the tax code: the mortgage interest deduction. It is not just a benefit for homeowners; it is a massive structural subsidy that distorts housing markets, inflates prices, and creates a regressive windfall for the wealthy while offering little help to first-time buyers. Lucas breaks down the mechanics of how this deduction works under current law as of September 2026, focusing on the $750,000 loan cap and its real-world impact. Luna challenges the common assumption that this policy helps everyone buy a home, presenting data on how it primarily benefits those already at the table. We explore the economic inefficiency of subsidizing debt rather than supply, and ask whether the government should be in the business of making houses more expensive for everyone else. #MortgageInterestDeduction #TaxPolicy #HousingMarket #RealEstateEconomics #FexingoBusiness #BusinessPodcast #FiscalPolicy #Homeownership #TaxCode2026 #EconomicInequality #PublicFinance #WealthEffect #HousingSupply #GovernmentSubsidies #LucasAndLuna #TaxReform #FinancialLiteracy #EconomicsExplained Keep every episode free: buymeacoffee.com/fexingo