Reasons - There are two main reasons to support this conclusion. First, congress, the senate and the president would have to act to retract mortgage interest deductibility. The National Association of Realtors and the National Association of Homebuilders would lobby hard against any attempt to change the tax deductibility of home loan mortgage interest. Second, many people have for years used home equity loans to pay off credit card debt. Then they use a new first mortgage loan to pay-off the home equity loan. In essence, people are already using the equity in their home to pay for dining out, vacations and other items charged to their credit card. The interest paid on home equity lines of credit and mortgages are tax deductible under all but the most limited cases. Additionally, even if the tax deductibility was totally eliminated, the cash-flow benefit attributable to the HomePort financing is very attractive and by itself is enough of a compelling reason to purchase your essential living services using the HomePort financing.

Consumer Buying Habits – Another question that is asked is “why would someone finance their telecom purchases.” To understand why, let’s consider the average consumers’ buying habits. As an example, a consumer goes out to dinner and has an expensive meal and they put the cost of the meal on their credit card. The meal was obviously consumed before the credit card bill arrives. The consumer pays the minimum credit card payment, thereby financing the already consumed meal. The credit card company charges the consumer interest on the meal at 21.2% per year. If the consumer doesn’t pay-off their credit card bill, the meal continues to cost the consumer an exorbitant amount each month! Then, the consumer hears a bank advertisement saying, “Pay off your credit card debt by taking out a home equity line of credit”. The consumer takes out a home equity line of credit to pay off the credit card. The meal, which was consumed a year earlier, has now been financed for 30 years! The purpose of this story is to show that people finance all kinds of expenses, mostly with high interest credit cards. And, at the end of the day, they use a real estate loan to extinguish the expensive credit card debt. Why not start with the real estate loan to finance the purchase of essential services rather than paying for the service with taxable dollars or a credit card? Financially, the consumer will be ahead by using the HomePort financing methods to pay for their essential life-style expenses!