New tax laws in 2018 have confused many homeowners about the tax deduction on mortgage interest. The changes don't affect most borrowers with conforming loans, but jumbo borrowers need to know the details.
Interest on the first $750,000 in mortgage debt for your primary residence or second home is tax-deductible. And the limit is $375,000 for those who use the married filing separately tax status.
If you already had a home mortgage before Dec. 16, 2017, and you want to refinance, you can still deduct the interest on up to $1 million in mortgage debt, so long as the refinanced amount does not exceed the balance on the original loan at the time you refinance.
There are some wrinkles in the new rules, particularly if you also have home equity debt, so consult a tax professional about your situation.