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Student Loans, Housing Reform, and Fed Drama: What This Means for You as a Buyer or Homeowner

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  Fed Drama, Student Loans, and Housing Reform: What This Means for You as a Buyer or Homeowner If you're a current homeowner—or hoping to become one soon—some big changes just dropped that could affect your budget, mortgage, and timing. From interest rate uncertainty at the Fed, to student loan interest returning, to fresh leadership at the top of the housing world—August opened with a lot of economic noise. But don’t worry—I’ve broken it all down into clear takeaways that matter for your wallet and your next move. Will Mortgage Rates Drop This Year? Here’s the big headline: The Federal Reserve is divided on whether it should start cutting interest rates soon. Two regional Fed presidents are now publicly urging a shift away from “higher for longer” thinking—arguing that the economy needs rate relief to avoid slowing down too much. But others, including Fed Chair Jerome Powell, are hesitant to act too quickly. What it means for you: Buyers: You may see mortgage rates come down...
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Once Upon a Time in the World of SALT Deductions…

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  Once Upon a Time in the World of SALT Deductions… Before 2017, homeowners could deduct the full amount of their state and local taxes—property taxes, income taxes, sales taxes—from their federal returns. But with the passage of the 2017 Tax Cuts and Jobs Act, that changed overnight: a $10,000 cap on the State and Local Tax (SALT) deduction was imposed through 2025, leaving many buyers in high-tax states facing a surprising federal tax bill each April Investopedia . Fast-forward to July 4, 2025—and enter the “One Big Beautiful Bill Act.” For tax years 2025 through 2029 , the SALT cap is now quadrupled to $40,000 , before phasing down for filers with Modified Adjusted Gross Income above $500,000 Investopedia Bipartisan Policy Center . That means a family in New Jersey paying $25,000 in combined property and state income taxes can once again deduct the full amount—whereas under the old law, they were limited to just $10,000. What This Means for Homebuyers Greater Affordabili...
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Location: McKinney, TX, USA
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Mortgage Interest Caps Are Now Permanent!!

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  Before the 2017 Tax Cuts and Jobs Act, homeowners could deduct interest on up to $1 million of acquisition debt—more than enough for most buyers. Then TCJA slashed that cap to $750,000 through 2025, and even threatened to let it revert back to $1 million at sunset. But when Congress passed the One Big Beautiful Bill Act on July 4, 2025, it put the $750,000 limit in stone , so it never increases or expires—no more wondering if your dream home’s financing will lose deduction eligibility in a few years Loeb & Loeb Bipartisan Policy Center . Imagine you’re shopping in a market where $700,000 homes are common. At today’s typical rate of around 6.75%, your first-year interest on a $700K mortgage runs about $47,250 . Under the old $500K cap, only $33,750 of that interest counted toward your itemized deduction—leaving $13,500 in interest you couldn’t deduct. Now, with the permanent $750K cap, all $47,250 flows through your tax return, reducing federal liability and freeing u...
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Location: McKinney, TX, USA
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PMI Premiums are Permanently Tax-Deductible!!

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  PMI Premiums Are Permanently Tax-Deductible Once upon a time, private mortgage insurance (PMI) premiums were deductible—until Congress let that benefit expire at the end of 2021. Homebuyers who put down less than 20% on a conventional loan could no longer claim PMI as qualified mortgage interest, making that $200–$400 monthly line item a pure out-of-pocket cost. Enter the One Big Beautiful Bill Act , signed July 4, 2025: it **restores—and locks in—**the deduction of PMI premiums as if they were mortgage interest, permanently . That means if you’re in the 24% federal tax bracket and paying $300/month in PMI, you can now save about $72 on your federal tax bill each month . Before the Act: $300/month PMI × 12 = $3,600 in annual premiums $3,600 was not deductible on Schedule A, costing borrowers the full amount out-of-pocket. After the Act: $3,600 in PMI is deductible as mortgage interest. At a 24% tax rate, you save $864/year (or about $72/month), freeing u...
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How about some mortgage rate stability?

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  Once upon a time, mortgage markets were the stuff of roller-coaster rides: headlines of sudden Fed pivots or geopolitical shocks could send 30-year rates soaring or plunging by half a percentage point in a single session. In that world, buyers learned to chase every tick lower, while Realtors scrambled to keep up with the next big swing. Today, things feel calmer—perhaps too calm. According to Freddie Mac’s July 17, 2025 survey, the average 30-year fixed rate sits at 6.75% , up only 3 basis points from the prior week but still under 7% Freddie Mac . That narrow band might seem “stable,” but don’t be fooled: even a ¼-point move on a $300,000 loan translates to about $50–$60 more (or less) in your monthly principal and interest payment, as Investopedia’s analysis shows Investopedia . What This Means for Homebuyers Budget wisely: A modest rate uptick can add $600–$720 to your annual housing costs. Lock with confidence: If you’re under contract or expect to close with...
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Location: McKinney, TX, USA
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Tips & Overtime Pay Just Got a Boost — Here’s What It Means for Mortgage Qualifying

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  A quiet but powerful shift just happened in the mortgage world—thanks to the new One Big Beautiful Bill Act , tips and overtime pay are now tax-exempt . That may not sound flashy, but for thousands of hourly workers, servers, healthcare professionals, and tradespeople, this is a game-changer—especially when it comes to qualifying for a home loan. What’s Changed? Before this law: Tips and overtime were taxable , reducing take-home pay and limiting how much could be counted as qualifying income for a mortgage. Now : With tips and overtime excluded from taxable income , borrowers keep more in their pockets and see an increase in their effective qualifying income . In short? Less tax. More house. Why This Matters in Mortgage Qualification Mortgage lenders look at your gross monthly income to determine how much home you can afford. When a portion of that income is taxed, your debt-to-income (DTI) ratio takes a hit—shrinking your buying power. With this change: A server makin...
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Location: McKinney, TX, USA
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What Does The One Big Beautiful Bill Mean To Homebuyers, Homeowners, and Real Estate?

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  Here are the key provisions of the One Big Beautiful Bill Act (H.R. 1, P.L. 119–21) that touch on the real-estate market, followed by those most directly benefiting homeowners and home buyers: I. New Laws Changing the Real-Estate Market State and Local Tax (SALT) Deduction Cap Raised The annual SALT deduction cap is increased from $10,000 ($5,000 MFS) to $40,000 ($20,000 MFS) for 2025, phasing out for higher-income filers (AGI over $500,000 single/$250,000 MFS) and indexing up 1% per year through 2033 EisnerAmper Investopedia . PTET “workarounds” (paying SALT at the entity level) are restricted to passthroughs eligible for the QBI deduction starting 2026 EisnerAmper . Permanent Extension of Qualified Business Income (QBI) Deduction Makes the 20% passthrough QBI deduction permanent and increases it to 23%, with a new, more gradual phase-out for high-income filers (replacing the old W-2-wage and capital-investment tests) EisnerAmper . This change primarily affect...
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Location: McKinney, TX, USA
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