Never Mind the Tax Cuts and Jobs Act, Here's the Homebuyers

Mortgage and Lending with Guaranteed Rate, Marin County, CA NMLS: 22343

Never Mind the Tax Cuts and Jobs Act, Here's the Homebuyers


Side One:

  • Mortgage Interest Deduction:  Reduced from $1MM to $750K.
  • Grandfather:  If you have a loan that was originated before 12/15/2017, and your mortgage balance exceeds $750K, you are still able to deduct the interest up to $1MM.  You're grandfathered in, unless...
  • Don't Fear the Refi:  If you refinance a mortgage with a balance above $750K and your loan was originated before 12/15/17 AND via the refi the loan balance does not increase, you will "carry over" your $1MM cap.
  • HELOC'd and Unloaded:  The mortgage interest deduction on home equity lines of credit (HELOCs) is eliminated.  


Side Two:

  • New and Improved:  If your HELOC can be shown to have been used to substantially improve your residence, mortgage interest may still be deductible, up to the limits.
  • Take Me Away:  Interest remains deductible on vacation homes, but only up to the limits.
  • S.A.L.T:  There is a $10K limit on state and local taxes that may be listed as itemized deductions.
  • God Save the Capital Gains Exemption:  OK, he did.  No changes to this from previous law.  If you sell your primary home (defined as occupied for two of the last five years), the capital gains exemption of either $250K or $500K, depending on single or married, stays in place.


Punk rock burst onto the music scene in the '70's because it was simple, loud and carefree.  The new tax law is complex, boring and important to understand if you're thinking of buying or refinancing real estate.  Sid Vicious would be happy to hear me tell you I'm not a CPA, but if you want to discuss the implications of getting a mortgage in the new tax environment, give me a call any time, we'll crank it up and rock the home loan Casbah.


California Uber Alles, 



Robert J. Spinosa
Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 Fax: 415-366-1590

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate's Human Resources Department.


Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood ChicagoIL 60613 - (866) 934-7283


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Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

OK I love the photo, and the easy to understand break down too!

Jan 22, 2018 07:57 AM #1
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

I employed the original drummer of the Sex Pistols when I lived in England, of course he left before they became famous, so he was not a very happy person.

Jan 22, 2018 01:33 PM #2
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Love this simple overview of what must be driving homeowners nuts. I wonder how long all this will stay in effect so you can write another post.

Jan 29, 2018 01:46 PM #3
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Rob Spinosa

SVP of Mortgage Lending, Marin County
Can I Get a Jumbo Loan with 10% Down?

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