Mortgage Interest Rate Deduction
If you’re a homeowner that itemizes tax deductions, you can deduct your mortgage interest for qualified primary and secondary residences bought, built or improved. It’s one of the many benefits of homeownership!
What is the Mortgage Interest Rate Deduction
The mortgage interest rate deduction is a tax incentive that allows homeowners to “deduct home mortgage interest on the first $750,000 of indebtness“* and up to $1 million for mortgage loans obtained before December 16, 2017.
For example: a homeowner with a $500,000 mortgage at a 7% interest rate may have up to $35,000 of annual interest expenses which is more than a standard deduction amount.
Primary, Secondary Loans Used to Buy, Build, or Improve Are Deductible
The maximum deductible allowed is up to $750,000 for individuals. This increased to up to $1,000,000 if you took out your home loan prior to December 16, 2017.
Talk to a licensed GMFS Mortgage Loan Officer to learn more about the benefits of homeownership and what financing is right for you!
GMFS LLC encourages all consumers to consult with a tax advisor concerning the tax implications for the type of mortgage sought.