Mortgage Interest Deduction allows homeowners to reduce their taxable income by deducting the amount paid in mortgage interest. This is a remarkably effective tool that facilitates homeownership. 

Mortgage Interest Deductions Provisions From the 2017 Federal Tax Legislation

Check out the Tax Cuts and Jobs Act - What it Means for Homeowners and Real Estate Professionals page for information on the major provisions affecting current and prospective homeowners, commercial real estate, and real estate professionals.

What Are the Limits on Mortgage Tax Interest Deductions?

  • The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/2017. Current loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap. Neither limit is indexed for inflation.
  • Homeowners may refinance mortgage debts existing on 12/14/2017 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the mortgage being refinanced.
  • The final bill repeals the deduction for interest paid on home equity debt through 12/31/2025. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.
  • Interest remains deductible on second homes, but subject to the $1 million / $750,000 limits.


NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.

Mortgage Interest Deduction allows homeowners to reduce their taxable income by deducting the amount paid in mortgage interest. Learn how it can benefit housing and homeownership, check out the IRS rules and guidelines, download ebooks explaining the law, and find out why there is opposition to it.

Mortgage Interest Deduction Basics

What REALTORS® Need to Know About the New Tax Law (National Association of REALTORS®, Feb. 25, 2019)


As Mortgage-Interest Deduction Vanishes, Housing Market Offers a Shrug (The New York Times, Aug. 4, 2019)

The Tax Change Wild Card (REALTOR® Magazine, Mar.-Apr. 2019)

Calculating the Mortgage Interest Tax Deduction (Investopedia, Feb. 16, 2019)

How Does the Mortgage Interest Deduction Benefit Housing and Homeownership?

Why Homeownership Should Continue to Be Incentivized by Our Federal Tax System (Rosen Consulting Group/National Association of REALTORS®, Feb. 2020)

7 Tax Benefits of Owning a Home: a Complete Guide for Filing in 2020 (realtor.com®, Feb. 3, 2020)

Study Finds Americans Prefer Tax Credits to Government Checks (Yale News, May 7, 2019)

How Tax Reform Changed the Market's Outlook (National Mortgage News, May 2019) E

The TCJA Versus Home Ownership (Accounting Today, Jan. 29, 2019) E

Why Is There Opposition to the Mortgage Interest Deduction?

Debunking 3 Myths About the Mortgage Interest Deduction (Tax Foundation, Jul. 21, 2020)

An Economic Analysis of the Mortgage Interest Deduction (Congressional Research Service, Jun. 25, 2020)

Eliminate the Mortgage Interest Deduction (Bloomberg, Aug. 9, 2019) E

The Case for Ending Income Tax Itemization of Deductions (Economics 21, Jul. 15, 2019)

Is Getting Rid of the Mortgage Interest Deduction a Good Idea? (Integrated Loans, Jun. 30, 2019)

Should We Get Rid of the Mortgage Interest Deduction? (Forbes, Jun. 28, 2019)

Time to Let the Home Mortgage Deduction Go (Corridor Business Journal, May 27, 2019) E

Chipping Away at the Mortgage Deduction (The Brookings Institution, May 13, 2019)

Rules, Forms, & Guidelines from the IRS on Mortgage Interest Tax Deduction

Topic No. 504 Home Mortgage Points (Internal Revenue Service, Jun. 26, 2020)

Home Mortgage Interest Deduction: Publication 936 (For Use in Preparing 2019 Returns) (Internal Revenue Service, Jan. 27, 2020)

Publication 530 (2019), Tax Information for Homeowners (Internal Revenue Service, Feb. 11, 2020)

How to Maximize Your Mortgage Interest Deduction (Forbes, Jun. 25, 2020)

How Much of an Impact Does the Mortgage Interest Tax Deduction Really Make? (Benzinga, Nov. 23, 2019) E

The SALT Cap Isn’t Harming State and Local Revenues. Myths about It May Be (Institute on Taxation and Economic Policy, Jun. 24, 2019)

eBooks & Other Resources


The following eBooks and digital audiobooks are available to NAR members:

How to Invest in Real Estate & Pay Little or No Taxes (Kindle, eBook)

The Home Mortgage Book (Kindle, eBook)

The Mortgage Answer Book: Practical Answers to More Than 150 of Your Mortgage and Loan Questions (eBook)

The Mortgage Encyclopedia: The Authoritative Guide to Mortgage Programs, Practices, Prices and Pitfalls (Kindle, eBook)

Mortgage Management for Dummies (Audiobook)

The Tax Lady's Guide to Beating the IRS and Saving Big Bucks on Your Taxes (eBook)

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