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Does The Trump Tax Plan Make It Dumber To Pay Off Your Mortgage?

Source: - Jun 12, 2018

Big changes to your mortgage and taxes are coming, thanks to the GOP tax plan. These include limiting the deductions for property taxes and lowering mortgage limits from $1 million to $750,000 on your primary mortgage. While these two changes made for big headlines, it’s the smaller changes that could really be a headache for the people who ignore them.

I recently spoke with a prospective client named John who wanted advice about buying a rental property. His real estate agent and mortgage broker both advised him to pull out money from his primary residence equity and use it for the down payment. He fully expected this mortgage interest to be tax deductible and neither the mortgage broker nor his real estate agent corrected him. I can’t say whether they were fully aware of the tax law changes or just didn’t care.


Category: General Business