Mortgage Interest Caps Are Now Permanent!!

 

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 & LoebBipartisan 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 up hundreds of dollars each month for other priorities National Mortgage ProfessionalTax Foundation.

What This Means for Homebuyers

  • Extra Buying Power: Permanent certainty around the $750K cap means you can comfortably target higher-priced properties without fearing an unexpected tax hit.

  • Run the Numbers: Grab an amortization schedule for your desired loan amount and plug in the full first-year interest to see exactly how much you’ll save.

How Realtors Can Turn This Into a Win

  1. Highlight in Listings: Feature “$750K MI Cap Forever” badges on higher-end property flyers and online listings.

  2. Create Side-by-Side Scenarios: Show buyers “Interest Deduction at $500K cap vs. $750K cap” so they see the real dollar difference.

  3. Co-Host Workshops: Partner with a CPA for a virtual seminar on “Unlocking Homebuying Savings under the Big Beautiful Bill.”

By weaving this permanent cap into your buyer conversations and marketing materials, you’ll transform a complex tax provision into a clear, compelling reason for clients to stretch for the home of their dreams—secure in the knowledge that their interest deduction won’t shrink tomorrow.

-Nate Carver, Premier Lending, Inc.

About Between Two Doors
Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask “right brain” questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.

Listen to more episodes at: https://www.betweentwodoors.com

Sponsored by:
Premier Lending, Inc.
https://www.natecarver.com

NMLS Numbers:
NMLS: 2004738
Licensed by the Department of Financial Protection and Innovation (DFPI). Equal Housing Opportunity.
https://www.nmlsconsumeraccess.com

📞 Contact: 972-832-5761

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Location: McKinney, TX, USA

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