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 Deduction provisions from the recently passed federal tax legislation

  • 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 Basics

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)

Testimony Before the House Ways and Means Select Revenue Measures Subcommittee (Tax Foundation, Jun. 25, 2019)

The Home Mortgage Interest Tax Deduction (The Balance, May 10, 2019)

How Does the Mortgage Interest Deduction Benefit Housing and Homeownership?

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

Mortgage Interest Deduction Cap Should Help First Time Buyers (National Mortgage News, Jan. 10, 2018)

Why Is There Opposition to the Mortgage Interest Deduction?

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, & G​uidelines from the IRS

Topic 504—Home Mortgage Points (Internal Revenue Service, Aug. 1, 2019)

Home Mortgage Interest Deduction: Publication 936 (For Use in Preparing 2018 Returns) (Internal Revenue Service, Apr. 30, 2019)

Publication 530 (2018), Tax Information for Homeowners (Internal Revenue Service, Jan. 16, 2019)

The IRS, the Mortgage Interest Deduction and You

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

Understanding the Mortgage Interest Deduction (Taxslayer, Feb. 8, 2019)

Tax Deductions That Disappeared in 2018 (Bankrate, Feb. 1, 2019)

The Mortgage Interest Deduction: Revenue and Distributional Effects (Tax Policy Center, Aug. 24, 2018)

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)

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

Have an idea for a real estate topic? Send us your suggestions.

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.


That's Who We R

The campaign ads rally consumers to "Look for the R" for reassurance, resources, and reliable guidance on their path to property ownership.


The latest from NAR about about COVID-19 (coronavirus), its impact on the real estate industry and events, and federal programs affecting REALTORS®.