The NEW tax Bill and Mortgage Interest laws- How I see it..
Matt Von Bergen
Senior Loan Officer | MVB Team Leader at Partners Mortgage - NMLS#209736 NMLS #236669 | DRE #01845041 -18 yr in Mtg industry
**NEW MORTGAGE CHANGES WITH THE TAX BILL**
A lot of my clients as well as friends have asked me about this lately, so I thought I would provide an article on it along with my opinion on the matter inf you were interested in it..
FIRST, I am not a tax expert, please consult your tax professional for tax advise on your own scenario. I'm simply a mortgage guy providing an opinion on some of the new mortgage tax bill changes since so many people have asked me to share it..
OK, let's dive in..
-Well, the bad part of this tax bill is the mortgage interest on HELOC's are no longer tax deductible.. This is pretty weak since I DO like my write offs, but it's not really THAT much when I think about it..
-The amount of interest you can write off on all of your mortgages combined is going from a cap of $1mill to $750k.. If you got in before Dec 17,2018 you are grandfathered in to the Million price point.
-So basically high priced areas, and second home markets will see a drop off in demand most likely. This isn't impacting most of you guys THAT much.. Also, let's be honest here.. If you own a couple houses and are rolling with over $750k plus in loans, then they are assuming you are doing pretty good and are probably smart enough to find other ways to get tax deductions.. If not, maybe it's good you help those less fortunate and you just happily pay your part?!..
-Buying a Second home now takes a little more thought and planning.. If you owe $400k on your primary home, you should have enough money saved up to make sure your second home loan is at or below $350k. It's that simple. If you want to go beyond that, it's on you and your tax benefits disappear.
-This is probably good news for most home owners in the Sacramento area, as the Bay area and coastal cities will probably push them our way.
With that said, I think the immediate future looks pretty good for real estate around here. Message or call me if you have any questions, scenarios or help!
I'd love the opportunity to earn your business!
Matt Von Bergen -Your Mortgage Pro
(916)337-1242 - NMLS#209736