You may have heard about the One Big Beautiful Bill Act, also known as “The Big Beautiful Bill,” that was recently signed into law. If you’re a homeowner, you may be wondering, ‘how does this affect me?’
If you’re a homeowner, there’s some good news. The new law may save you money when tax time comes around. Here’s what you need to know:
- Homeowners have been able to deduct the amount they spend on mortgage interest up to a certain limit. This is the largest tax benefit for a homeowner, and it can make a big difference in how much you pay and how big of a refund you may get back. The Big Beautiful Bill makes the deduction permanent so you may find yourself working with a larger tax refund next April.
- Homebuyers who make a downpayment of less than 20% typically have to buy private mortgage insurance (PMI). PMI is particularly common among first-time homebuyers. If you’re currently paying PMI, the new law allows you to now deduct those payments when you file your taxes.
- As a homeowner, you can deduct the amount you spend on state and local property taxes on your overall tax bill. Now the law lets you deduct more than you would have been able to deduct in the past. In fact, the law increases the maximum state and local taxes deductions from $10,000 to $40,000.
What About Refinancing?
In addition to the new tax benefits, it may also be a good time to think about refinancing your mortgage. Refinancing means replacing your current home loan with a new one—often to secure a lower interest rate, reduce monthly payments, or switch to a loan term that better fits your financial goals.
The tax deductions made permanent by The Big Beautiful Bill (such as mortgage interest and property tax deductions) can add even more value to a refinance decision. If you refinance into a lower rate and keep deducting mortgage interest, you may save both on your monthly mortgage and at tax time.
Refinancing isn’t right for everyone, but with the changes in this law, homeowners could find it worthwhile to review their current mortgage and see if the timing makes sense.
All these provisions could help you keep more money in your pocket, making your investment even more valuable.
The Big Beautiful Bill will likely affect you and your neighbors in many ways – some good and some. bad. But if you’re a homeowner, there are parts of the bill that you can leverage. Make sure you make the most of them. Schedule a consultation to see how you can benefit and to see if refinancing is right for you.
