There's a lot of hype, chatter, and noise concerning the proposed changes to the Mortgage Interest Deduction in Trump's recently released tax plan.

The tax form proposal limits the mortgage interest deduction to $500,000 (down from a million) and to primary residences only.

The National Association of Realtors and the National Association of Home Builders almost instantly came out in opposition to the plan because of two changes that will limit the deductibility of mortgage interest. NAR President Warren Brown said, "The nation's 1.3 million Realtors® cannot support a bill that takes homeownership off the table for millions of middle-class families."

Related: How many families actually own half-million dollar home

Contrary to their concerns, the housing and mortgage industry will be just fine. Let's clear up some misconceptions. 

The only way the change will really affect you is if you buy a house with a mortgage over $500,000 after the plan goes in to effect. 

At the end of the day, policy changes to the mortgage interest deduction will only impact about 2.5% of American households. As always, if you have any questions or concerns, please contact us directly at (732) 626-9827.