The U.S. Senate recently passed the GOP tax plan, which would eliminate state and local tax (SALT) deductions, and alter tax brackets so that many taxpayers would pay a lower percentage of their income in federal taxes.
Both the U.S. House and Senate GOP tax plans are expected to discourage taxpayers from itemizing and taking the mortgage interest deduction. Only 21.5 percent of Americans claimed the mortgage interest deduction in 2015, per the Pew Charitable Trusts, typically getting back an average $3,000, according to Moody's Analytics, Realtor.com reports.
"The cost of ownership is going to rise," says Matthew Gardner, chief economist of Windermere Real Estate, adding, "If you live in New York, New Jersey, California, you're going to get hammered," he says. "But if you're in Nebraska or Texas, you could see some homeowners benefiting."
