3 Smart Mortgage Moves for 2018

Most investors have focused on the soaring stock market, but recent moves for interest rates have a lot more impact on the decisions mortgage borrowers have to consider. Whether you're in the market for a home now or looking for cheaper alternatives to a home mortgage you already have, it's crucial to be aware of the conditions in the mortgage market going into 2018. The following three issues are worth a closer look before the end of the year.

For most Americans, the idea of ever owning a $1 million home might sound like an impossible dream. Yet in some high-priced real estate markets, even entry-level homes require you to think about a high six-figure mortgage.

The reason to get a move on and lock up financing on high-priced homes now is that potential tax changes could take away a key deduction on large mortgages. Under current law, you can take mortgage interest on loans as high as $1 million as an itemized deduction on your tax return. However, lawmakers are currently taking a closer look at that provision, with some looking to cut that amount to $500,000. Most of those watching tax reform in Congress believe that existing mortgages of $1 million will be grandfathered in, allowing them to claim their larger deductions even after the new rules affect those taking out new mortgage loans in 2018 and beyond. To be as certain as possible that you'll be able to get your full deduction, take a look at accelerating the buying process if you expect to borrow more than $500,000 on your mortgage.

Source: Fool.com