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The mortgage interest deduction (MID) allows homeowners to deduct from their taxable income the interest payments on home mortgage balances up to $1.1 million and home equity loans up to $100,000. Replacing it with a refundable credit and reducing the size of the mortgages eligible for the credit could distribute benefits more equitably, help reduce overinvestment in housing, and also increase revenues. Read more in this Just the Facts.