Although it is still fairly early in the game, the Trump presidential administration has already been moving quickly to make some key changes in the U.S. housing market – some of which could be concerning to home owners, as well as to potential home buyers.
For example, one of the new President’s aims is to put a cap on the popular mortgage interest tax deduction. Another is to do away with government backing of the mortgage industry’s Fannie Mae and Freddie Mac, making them private entities – which could, in turn, have major implications on mortgage regulations, as well as private loans.
Yet, while the Trump Administration, for the most part, backs making these mortgage giants private, doing so could result in the elimination of the 30-year fixed rate mortgage – which is the most popular of the borrowing options with U.S. home purchasers. In addition, going ahead with this move may also end up costing billions of dollars just to shift Fannie and Freddie from the government’s control.
In outlining their plans going forward, the new head of the United States Treasury Department is aiming to limit the tax deduction on home mortgages – an item that has been an extremely popular draw for many homeowners in the U.S. (Currently, there is a limit on this deduction of $500,000 for single tax filers, and $1 million for taxpayers who are married and are filing a joint return).
While it is still too early to tell how these proposed moves may play out, if you are currently considering making a move, now may be the ideal time to do so – and working with an experienced realtor can help make the entire process move more seamlessly.
For more information, or to view homes that fit your criteria in the Bakersfield and surrounding area – Contact Us. We will also provide you with a no obligation analysis of your current home’s value.