What is the mortgage interest deduction limit?

For mortgages originated after December 15, 2017: interest on acquisition debt up to $750,000 is deductible. Pre-TCJA mortgages have a $1 million limit. The TCJA limits expire after 2025.

Does home equity loan interest qualify?

Since TCJA, home equity loan interest is only deductible if the loan proceeds were used to buy, build, or substantially improve the home securing the loan. Interest on home equity used for other purposes is not deductible.

How does the standard deduction affect benefit?

Mortgage interest only saves taxes if total itemized deductions exceed the standard deduction ($14,600 single / $29,200 MFJ in 2024). Bunching strategy and state tax proximity help maximize benefit.

Is PMI still deductible?

Private Mortgage Insurance deductibility has been temporarily extended multiple times. Check current law for the applicable tax year, as this provision expires and is renewed periodically by Congress.

Can I deduct points paid on a mortgage?

Points paid for a primary home purchase are generally deductible in the year paid. Points on a refinance are deducted ratably over the life of the loan. Investment property points are deducted over the loan term.

US Mortgage Interest Deduction Calculator

Calculate mortgage interest deduction on Schedule A. Limit: interest on up to $750,000 of acquisition debt (TCJA limit). Pre-Dec 2017 mortgages: $1 million limit. Home equity debt used for improvement qualifies.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate mortgage interest deduction on Schedule A. Limit: interest on up to $750,000 of acquisition debt (TCJA limit). Pre-Dec 2017 mortgages: $1 million limit. Home equity debt used for improvement qualifies. Use the mortgage interest deduction result to inform your calculation.

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Frequently Asked Questions

What is the mortgage interest deduction limit?

Does home equity loan interest qualify?

How does the standard deduction affect benefit?

Is PMI still deductible?

Can I deduct points paid on a mortgage?