While each chamber of Congress recently approved a version of new tax regulations, the direction is clear. We are in for a whole new era of taxes. While I would strongly recommend consulting a tax consultant, I do want to give you an idea of how I understand this will impact the home buying market. The big difference between the versions is the amount of mortgage interest deduction that will be allowed. On new mortgages, the House version caps it at the interest on the first $100,000. The Senate version caps it at $1,000,000. In addition, there is the possibility that the property tax will no longer be a valid itemized deduction. I anticipate for things to become clearer prior to Christmas but whatever happens, these changes will likely impact the real estate market.

I’m Karen, your Mortgage Genie, helping you find the home of your dreams.