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Can I still write off my mortgage interest if I refinance?


We’re getting questions about refinancing and deductions for mortgage interest. Let us refresh you on the rules and more specifically, how interest on refinanced mortgages work.


First the rules:


You can deduct mortgage interest on up to $750k of outstanding principal. Meaning that if you have a $1m mortgage, interest is only deductible up to $750k.


There is an exception:


If your mortgage was taken out before December 16, 2017, interest is deductible on a mortgage up to $1m. Meaning that if your mortgage was in place before that date, and you had a $1M mortgage, interest is 100% deductible.


Now for refinancing and you'll be happy to hear this:


If you refinance a mortgage originally taken out before December 16, 2017, interest on the new refinanced mortgage remains deductible up to $1m of principal. So if you had a mortgage taken out before that date with an outstanding balance of $1m, and refinanced today for $1m, interest remains 100% deductible.


If you refinance a mortgage taken out after that date, interest is deductible up to $750k of outstanding principal.


If you have any questions, feel free to reach out to our team.

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