The mortgage interest deduction is a widely-used and lucrative tax deduction for homeowners. It lets homeowners deduct the interest they pay on any loan used to build, buy, improve their residence.

Like many itemized deductions, mortgage interest underwent some changes after the Tax Cut and Jobs Act went into effect.

Under the new law, the mortgage cap has been lowered from $1,000,000 to $750,000, and it now applies to only your primary residence. You should also be aware that since mortgage interest remains an itemized deduction, it will need to exceed the newly increased standard deduction in order for it to make sense to use.

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