Question:

What is the current mortgage interest rate tax deduction limit?

Answer:

Home mortgage interest rate tax deduction limit is generally set at $1.1 M combined first and second mortgage and home equity loan debt on eligible first and second homes for joint filers. Homeownership has great tax deduction benefits, especially with those in a large tax bracket and expensive mortgages.

There have always been an ongoing debate for reduction or elimination of mortgage interest and points tax deduction benefits. However, as of now, this doesn't seem likely to happen in the near future.

What are the arguments for reducing mortgage points and interest rate tax deduction benefits by a tax code change?

One is that there will be a much needed boost to the U.S. Treasury revenue and offset other tax cuts.

Another major argument is that homeownership tax benefits are encouraging people to take out unnecessary home equity loans only to induce greater indebtedness. Also, those capable of maximizing the $1.1 M home loan limit (buying million dollar properties) are not those who are really in need of mortgage tax deduction benefits.

Also, people who rent are unable to use home loan interest and points tax deduction benefits compared to homeowners.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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