USA Today gives readers the tragic story of Robert Westover, a homeowner who is desperately hoping to be able to sell his ocean view vacation home for a profit of just $265,000 (approximately $175,000 after adjusting for inflation). This intended profit is equal to more than five times the median worker's annual pay and more than 30 times the average annual TANF payment to a family.
Fortunately, there is hope for people like Mr. Westover. The National Association of Realtors is pushing to have the government provide subsidies for purchasing such high end homes by guaranteeing even very large mortgage loans. (The current limit is between $417,000 and $730,000, depending on the area.) If the guarantee lowers the interest burden by 1.5 percentage point, then the government would effectively be handing $15,000 a year to someone who takes out a $1 million mortgage.
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
Copyright 2024 | The American Prospect, Inc. | All Rights Reserved
