Refinancing a Home
Will Mortgage Interest Always Be Deductible?
Recent legislative proposals are designed to reduce the deficit by ending the mortgage interest deduction on mortgages that are above $500,000 instead of the current $1,000,000. Also, proposals include completely eliminating deducting interest on second homes and home equity loans and home equity lines. Why? The tax breaks add up to nearly $131 billion dollars.
The impact on most homeowners will be minimal, since a small percentage of Americans have loans greater than $500,000, but millions of Americans have taken out home equity loans. Tax deductions that are here today may be gone tomorrow make sure you keep track of the impact of legislation on your mortgage and your money.