Mortgage Interest Deduction (MID)

This IRS policy allows homeowners who meet certain requirements to deduct the cost of the interest on their mortgage loans from their taxable income. This can lower the amount of taxes an individual owes on their income and, indirectly, make owning a home more affordable since the home loan diminishes taxable income. 2017’s tax reform act limits the amount of mortgage interest that may be deducted and may make the purchase of relatively expensive homes more financially difficult.