The mortgage interest deduction (MID) continues to be a valuable financial tool for qualified homeowners, even after the 2025 tax reform law, H.R.1, preserved this important benefit. The deduction allows taxpayers who itemize to deduct interest paid on a home loan—up to $750,000 on a primary or secondary residence—from their taxable income, often resulting in significant savings.

According to the National Association of Realtors (NAR), the MID remains particularly beneficial for first-time homebuyers, providing both financial incentives and long-term homeownership support. A recent NAR survey found that 91% of voters support keeping the deduction, although some homeowners no longer benefit due to higher standard deductions.

Why the Mortgage Interest Deduction Matters

• For buyers: The MID can make homeownership more affordable by lowering the effective cost of a mortgage, especially for those purchasing their first home.

• For sellers: Understanding the MID helps agents advise clients on how tax benefits may influence buying decisions and property value perception.

• For real estate professionals: Knowledge of the MID is essential for guiding clients through buying, selling, or refinancing while maximizing available tax advantages.

By leveraging the mortgage interest deduction, homeowners can reduce taxable income, save money, and gain confidence in their real estate decisions. Real estate professionals should stay informed on MID regulations to provide expert guidance and highlight the benefits of homeownership.

Source: National Association of Realtors, 11/20/2025