(IRS) Form 1098, which you’ll receive from your lender at the end of the year. This form shows the amount of mortgage interest that you’ve paid. The Tax Cuts and Jobs Act (TCJA) applies from 2018 to 2025 and limits the aggregate deduction for state and local real estate property taxes; state and local personal property taxes; state, and local, and foreign income, war profits, and excess profits taxes; and general sales taxes (if elected) for any tax year, up to $10,000 ($5,000 for marrieds filing separately). This limit does not apply if those taxes are paid or accrued in carrying on a trade or business, or in an activity engaged in for the production of income. In other words, if you are just living in your home, you can only claim up to $10,000 in tax deductions on your property, but if you are earning income directly from your home in some way, the limit might be waived. As always, please make sure you check with your tax advisor as to what you are allowed to deduct. Current mortgage rates are relatively low. Interest rates vary through the years. Several years ago, interest rates were higher, and it was more expensive to obtain a mortgage. In 1976, when I first got into the mortgage industry, 30 year fixed rate mortgages were 7.75% and you also paid 3% points on top of that to purchase or refinance a home. 5 years later mortgage rates were over 18%! two years ago (2022), 30 year fixed rate mortgages were around 3.25% and currently they are on average around 7.00% with zero points. Like any other type of financial instrument, mortgage rates can go up and can go down with economic cycles. Ownership rights and creative freedom. Your decorating and home-improvement choices are just that — yours, provided they don’t break building codes or violate homeowners’ association
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