During tax season, many homeowners are asking: Can mortgage interest be deducted from taxes? The answer is yes, but there are specific rules and limits you need to know. This guide will explain how the mortgage interest deduction works, who qualifies and how you can take advantage of this tax benefit.
The mortgage interest deduction allows homeowners to deduct the interest paid on a qualifying home loan from their taxable income. This could lead to significant tax savings, especially for those with large mortgage balances.
To claim the deduction, you must meet these key requirements: ✅ You must itemize your deductions – The mortgage interest deduction is only available if you itemize instead of taking the standard deduction. ✅ Your mortgage must be secured by your home – The loan must be for a primary or secondary residence. ✅ The loan must be used to buy, build or improve your home – Interest on home equity loans and HELOCs is deductible only if the funds were used for home improvements.
The amount of mortgage interest you can deduct depends on when your mortgage was taken out:
These limits apply to the total mortgage debt across both a primary and secondary home.
The mortgage interest deduction is only beneficial if your total itemized deductions exceed the standard deduction for 2024:
If your mortgage interest, property taxes, and other deductions don’t add up to more than the standard deduction, then itemizing may not be the best choice.
The mortgage interest deduction can be a powerful way to lower your tax bill, but it’s not always straightforward. For tax advice, please consult a tax professional. They can help determine if you qualify, ensure you maximize your deductions, and guide you through the process to avoid costly mistakes.
If you’re thinking about buying a home, refinancing or need guidance on loan options, let’s talk! I’m here to help you navigate the mortgage process with experienced advice and a variety of options.
Your trusted loan officer, Kristin Fox
Fox-Guidry Team
Senior Vice President & LPO Manager NMLS#378579
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This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.