Trump’s new federal legislation, passed earlier this month, covers a wide range of economic policies, but several key changes are particularly important for current homeowners and those looking to buy in the near future.
Here’s a breakdown of what you should know, and how these changes might impact your mortgage, tax deductions, and home financing options.
1. Mortgage Insurance Is Tax-Deductible Again
If you have a loan with Private Mortgage Insurance (PMI), this is good news for you: You can now deduct mortgage insurance premiums on your taxes permanently. This deduction may add up to hundreds or even thousands of dollars in annual tax savings.
2. Mortgage Interest Deduction Limits Are Now Set in Stone
If you’ve taken out a mortgage after December 2017, you may already know that the interest deduction is capped at $750,000. That limit is now permanent. Although it would be nice to see the limit increased for us in high cost areas, the good news to focus on is that at least it was not decreased.
3. Higher Deduction Cap for Property & State Taxes (SALT)
From 2025 through 2029, the cap for deducting state and local taxes (SALT) — including property taxes — will increase to $40,000 for many households.
Thankfully, this means that those of us living in higher cost states and areas will be able to deduct more than the $10k limit that has been imposed in the past few years, thereby reducing our overall tax burden.
4. A Big Boost for Affordable Housing
The bill includes a major expansion of the Low-Income Housing Tax Credit, which is expected to support the development of over a million affordable rental units over the next decade. Time will tell what new opportunities will be created, especially in underserved or growing communities.
5. Long-Term Support for Opportunity Zones
The law also extends and enhances Opportunity Zones, which are areas designated for economic development through tax incentives.
While this legislation covers a lot of ground, the biggest takeaways for homeowners and buyers are:
✅ More tax deductions — especially for mortgage insurance and property taxes
✅ Greater predictability — in mortgage interest rules
✅ Expanded affordable housing — for renters and first-time buyers
✅ Stability in policy — which helps with long-term financial planning
If you have questions about how these changes might apply to your current mortgage or future home purchase, I’m here to help. Whether you’re buying your first home, refinancing, or investing in property, understanding how these updates impact you can help you make smarter decisions.
