Mortgage Blog

1) Lowers the mortgage interest deduction cap from $1 million to $500,000

2) Eliminates the mortgage interest deduction on second homes;

3) Eliminates state and local income tax deductions; 

4) Caps property tax deductions at $10,000; 

5) Extends the capital gains exclusion qualification period from two years to five years,
which further locks up badly needed inventory. 

This will affect the real estate market a little bit in the bay area.