New Tax Law Excel Calculator Shows Multi Year Home Ownership Financial Benefits Up to $750k Mortgage and $10K SALT Limit.

I have constructed a new Excel calculator HERE (and embedded below) that shows the financial benefits available to home purchasers with mortgages up to the new $750k mortgage limit and with the maximum $10,000 SALT limitation.   

IF you view the file in your browser you will need to scroll to the right to see all results, including a graph on the second page; my personal recommendation is that you download the file to fully view it 

Key features

• Allows modification of rates for loan interest, taxes, down payment, standard deduction cost of living adjustment, and home appreciation.
• Shows net federal income tax benefits only AFTER subtracting inflation adjusted standard deduction values for both married filing jointly, and single filers and SALT at the maximum of $10,000. 
• Allows selection of any end of year from 1-30 to calculate financial benefits. 
• Shows results for the end of the year selected and the monthly average over that period of time. 
• A graph on the second page (to the right) displays results separately for federal income tax savings, loan principal reduction, home price appreciation and total financial benefits. 

The default settings for a $750,000, 4.5% rate loan with 1% annual home price appreciation, show that after 5 years the home owner would accumulate between $139k and $157K ($2,300 to $2,600 monthly) in financial benefits, including $25k to $42k ($400 to $700 monthly) in federal income tax benefits. Over that same period a HUD income eligible renter NOT receiving rent assistance would see ZERO housing benefits. 

An additional worksheet shows the new tax brackets and standard deductions for married filing jointly, single, and head of household filers. 



Originally created and posted on the Oregon Housing Blog.