2018 Tax Laws

[MRL]

Now that the interest on home equity loans is no longer a tax deduction, do you think that there will be an increase in refinancing of first mortgages? I am guessing most people will just refinance instead of taking a second mortgage.

 

[Carnivore]

Now that the interest on home equity loans is no longer a tax deduction, do you think that there will be an increase in refinancing of first mortgages? I am guessing most people will just refinance instead of taking a second mortgage.

I have not looked at the new tax code as it applies to myself yet, so I was not aware that 2nd mortgage interest is not deductible. If I recall correctly a 2nd mortgage in the past was for home improvements, which would include repairs was deductible. From your question am I correct in assuming that all 2nd mortgages(current or future) for any reason are NOT DEDUCTIBLE?

To answer your question, Yes I bet people will go that route. Unless their is something in there that limits it to no more than the original amount.

I guess I need to start looking over the new tax code to see how much I am screwed. :-(
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Added:

I don't fall into the Poor Class as democrats describe. But I dang sure am not Rich.

 

[Randolph Kinney]

If you can't break the new standard deduction amount to itemize, the utility of using the home as an ATM is diminished. It will take time for people to understand the changes in the tax law and react to them. As they do react, that will impact mortgage financing.