With tax code changes coming, it’s time to look at what you can deduct from your Mortgage interest this year and how it will change for the taxes you will have to pay April 15, 2019. Your Mortgage and your taxes work together to save you money, but only if you claim it properly.
This year, you are still able to deduct the interest from up to $1 million in mortgage debt if filing married jointly, or $500,000 if filing singly. You can do this if you are filing with itemized deductions, so if you are already taking a lot of write-offs, this is a great deduction for you. It’s worth the work for almost every homeowner and is really valuable for newer homeowners and first-time homebuyers.
That’s because most mortgages are built so that you pay off the interest first, and then the principal. If you owe $300,000 on a 30-year fixed mortgage and are paying 4% interest, you can deduct $10,920 from your taxes. It’s a great program that rewards homeowners for putting down roots and paying their bills.
Next year, there will be a few changes. If your loan was taken out any time from December 15th, 2017 on, you can only claim the interest on the first $750,000 as deductible if you are married filing jointly, and half that or $375,000 if filing singly. Unless you fall into those specific categories, you get the same deduction next year. You have to fall into both of these specific categories, as well. If you have a mortgage under $750,000 taken out after the deadline, you are in the clear, and if you have a mortgage larger than $750,000 that came before the deadline, you are also safe.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?