Core Insights - The One Big Beautiful Bill Act introduces significant tax changes for U.S. homeowners, including a permanent extension of the $750,000 mortgage interest deduction limit and reinstatement of mortgage insurance premium deductions [2][6] - The SALT deduction cap has increased from $10,000 to $40,000, benefiting homeowners in high-tax states [6][8] Tax Deductions - Homeowners may find itemizing deductions more beneficial due to the new tax law, especially if they pay mortgage insurance premiums, which can push them over the threshold for itemizing [3][11] - The mortgage interest deduction applies to the first $750,000 of mortgage debt, meaning only a portion of interest on larger mortgages is deductible [4][10] Mortgage Insurance - Mortgage insurance premiums, previously deductible from 2007 to 2021, are now deductible again, potentially saving homeowners an average of $1,454 annually [6][11] - Homeowners with less than 20% equity typically pay mortgage insurance, which can range from 0.2% to 2% of the mortgage amount annually [5][6] SALT Deduction - The SALT deduction allows homeowners to deduct various non-federal taxes, with the new cap significantly benefiting those in states with high property taxes [7][8] - The deduction phases out for households with incomes over $500,000, primarily benefiting middle- to high-income households [8][9] Financial Considerations - Homeowners with higher mortgage rates, averaging around 6.69% in recent years, may find the mortgage interest deduction particularly valuable [10] - The decision to itemize or take the standard deduction will depend on individual financial circumstances, including mortgage size and other deductions [9][11]