The mortgage interest rate deduction will significantly increase you tax return.
This deduction is extremely influential in consumer decision making, providing an incentive for consumers to purchase homes.
The mortgage interest rate deduction currently allows consumers to deduct money paid toward mortgage interest from taxable income. This currently applies to mortgages on a principal residence or a second home. There are limits to the amount you can deduct, which is interest for up to the first $500,000 of debt for individuals and 1,000,000 for married couples filing jointly.
The now passed GOP tax plan will cut this cap on the deduction to $750,000. This will disproportionately adversely affect homebuyers in high-cost living areas like Boston. The Trump administration will sign the bill into law by the end of 2017.