Updated: Apr 14, 2020
New homeowners can include mortgage interest paid on up to $750,000 of principal value on a new home in their itemized deductions.
The old, $1 million caps continue to apply to current homeowners (those who took out their mortgages on or before Dec. 15, 2017), as well as refinancing on mortgages taken out on or before Dec. 15, 2017, as long as the new mortgage amount does not exceed the amount of debt being refinanced.
Homeowners CAN deduct interest paid on a home equity line of credit or home equity loan, so long as the loan was used to buy, build or substantially improve your home.
These changes are set to expire after 2025.