If you’ve already got a mortgage, things won’t change. You can still deduct the interest you pay on mortgages up to $1 million.
But if you’re planning to get a new mortgage, you may not be able to deduct as much. The latest tax plan from House Republicans would cap the mortgage interest deduction on new loans at $500,000.
That change will likely deliver a significant blow to new California homeowners. About 23% of current mortgages in Los Angeles County are more than $500,000. In San Francisco it’s 56.6%.
So, how much would you be able to deduct if you got a new loan under this proposed law?