Independent neighborhood guide, not affiliated with any homeowners association, property manager, city or official board.
Updated October 23, 2026
The mortgage interest deduction goes back to the start of the federal income tax in 1913, when all interest was deductible. Back then, almost nobody borrowed to buy a home.
Over time, it became one of the best-known tax benefits of owning. The rules have changed a lot since, most recently in 2017 and 2025.
Here’s a general overview.
How it works today
- Acquisition debt: Interest is generally deductible on mortgage debt used to buy, build or substantially improve your main home or a second home, up to $750,000 of debt for most loans taken out after December 15, 2017. Older loans may qualify for the earlier $1 million limit.
- Home equity debt: Interest on a home equity loan or line is generally deductible only if the money is used to buy, build or substantially improve the home that secures it.
- Itemizing: You only benefit if you itemize deductions, and many households now take the standard deduction instead.
Refinancing
When you refinance, the balance of your original acquisition debt generally carries over. Extra cash you take out may or may not be deductible depending on how you use it.
Check with your tax pro
Lenders care about your equity, not whether your interest is deductible. Before you buy or refinance, ask your tax professional how the rules apply to you. Read Refinancing to Remove a Borrower, or start with the buyer questionnaire.
This is general information, not financial, tax or legal advice. Talk with your lender, CPA or attorney about your situation.
A simple plan for your the mortgage interest deduction move
I’ve been helping people sell and buy homes across Minnesota, Wisconsin, and Florida for about two decades, and I build and remodel luxury homes too. I’ll help you see both what a property is and what it could be.
Getting the house ready, or making it yours
If you’re selling and want repairs handled before buyers see them, Super Crew Contractors can give you an estimate. If you’re ready for something custom, Ivy Lane Homes does luxury home building and remodeling. And a quick coverage check with Intrinsic Insurance before closing can save you a surprise. For the local picture, read my Chaska homes guide or browse neighborhoods in Chanhassen and Victoria.
Super Crew Contractors, Ivy Lane Homes and Intrinsic Insurance are owned by David Olson; you are free to use any contractor, builder or insurer.
Your next step in the mortgage interest deduction
Every move is different. When you’re ready to talk about yours, I’m a call or text away.
Please note: I don’t handle rentals or property management. I work with sellers and buyers, and that’s where I can help you most in the mortgage interest deduction.
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