How does one make the new tax code warm and fuzzy?

(Mortgage Deductions in 2018)

Answer:  Not possible – it’s the tax code.  However, the United States tax code won’t stop us from posting a photo of the world’s happiest looking animal down under, the Australian quokka:

For some interesting facts and a great story about quokkas, check out this link:  6 Things to Know About Quokkas

Putting warm and fuzzy animals aside, how does the recent tax bill affect your mortgage and property tax deductions?  Here is a comparison of the limits set by the new tax laws:

1. Deductible mortgage interest   *principle residence:     


$1.1 million mortgage amount (including $100,000 home equity debt)


$750,000 mortgage – home equity debt excluded unless used for purchase or substantial remodel

2. Deductible property tax + state and local income tax:


No limit



3. Deductible mortgage insurance:                                               


Some portion is deductible if adjusted gross income is less than $109,000 if married filing jointly

or $54,500 if filing as an individual


Unclear at this time – must be reaffirmed  by congress to be deductible for 2018

Grandfather clause: Fortunately, the new $750,000 cap on deductible first mortgage debt is only in effect on homes bought on or after December 15, 2017. Mortgages on homes purchased before December 15, 2017 are grandfathered in under the previous $1.1 million mortgage cap. If home equity debt is taken for the purpose of purchasing a principal residence or making substantial improvements on that residence, the interest remains tax deductible up to the maximum limit of $1.1 million or $750,000 depending on when the home was purchased.

If you are aware of anyone who will need a mortgage for purchase or any type of refinance, please let me know or give them my contact information.  I would welcome the opportunity to help anyone you know with their finance needs.

Kent Cochrum, Senior Loan Originator

NMLS #194755

(630) 330-1334   mobile

(630) 634-5136 office

Avenue Mortgage, a division of CIBM Bank, member FDIC

330 S. Naperville Road, Wheaton, IL 60187

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