Originally Posted by Rain Man
By 'lowered rate deduction', do you mean a lower rate in general? Or is this some other term that I don't understand?
The mortgage rate deduction is flawed in that it provides a bigger benefit to those who are more affluent and it encourages people to buy more home than they need, which has all sorts of other implications. It would be better to have a lower rate, but I have no idea how you put that genie back in the bottle. Phasing out the home mortgage deduction would be very difficult and it would damage a lot of households. I don't know how you could even do it from a realistic perspective.
I was thinking something like "Homeowners with existing mortgage, check box" and check box provides a certain percentage rate deduction on gross income. Not sure what a good percentage would be. I'll throw out 2%, and people can tell me about that.