Between Two Doors

  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...

  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...

  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...

  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...

  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...

  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...

  Weekly Mortgage Market Update July 17, 2025 Mortgage rates have held in a narrow band around 6.7–6.8% over the past two weeks, despite headline-grabbing chatter about a potential Fed Chair shakeup; the Fed’s July 30 meeting is expected to pass without change, with markets eyeing a possible cut in September. Meanwhile, the newly enacted “One Big Beautiful Bill” delivers permanent tax wins for homebuyers—mortgage insurance premiums remain deductible, the cap on deductible mortgage debt jumps from $500K to $750K, and the SALT deduction limit increases to $40K through 2029—boosting affordability, especially in higher-cost markets. For Realtors and buyers, now is the time to lock competitive rates, educate clients on these new tax benefits, and prioritize those first-contact opportunities when borrowers most often choose their lender. 1. Market Snapshot: Rates Remain in a Tight Range Despite a flurry of headlines about potential Fed Chair changes and political back-and-forth, mort...

In a recent episode of Loan Officer Success Live , hosted by Devin Dubuc, I had the pleasure of reconnecting with one of my “best friends in the industry” to discuss everything from my back-road beginnings to the cutting-edge tools I’m using today. Below are the highlights of our conversation, along with some industry insights to put our discussion in context.  To listen to the full conversation click here:  https://youtu.be/7bZJrGESNms?si=JEiwzyTxV4DNXNRo From Bee Farmer to Branch Manager Roots in Service Grew up in East Milton, FL; later moved to Sherman, TX, and graduated from Hardin-Simmons University before serving 15 years as a U.S. Army officer. Post-military, drove for three and a half years as an Uber driver, where a chance passenger—bank owner Ron Fountain—encouraged me to get my mortgage license. Transition to Mortgage Entered the mortgage world in 2018, riding the tail end of the refinance boom, then pivoted to building a retail business as...