Big, Bold, and Beautiful: What the New Tax Bill Means for Homeowners

Neil Caron
Jul 22
2 min read

July 22, 2025 | Policy & Advocacy | Presented by ReadySetLoan

A major tax overhaul just passed—and it’s sending ripples through the real estate world. Dubbed the “Big Beautiful Bill,” this new legislation, signed into law by President Trump on July 4th, is packed with provisions aimed squarely at homeowners, real estate professionals, and the housing industry at large. And while it might not be perfect, the National Association of Realtors (NAR) is calling it a huge win.

Let’s break down what it means for you.

🐷 RSL Piggy Points: Key Highlights from the Big Beautiful Bill

SALT Cap Raised to $40,000Homeowners in high-tax states like Connecticut, New York, and Massachusetts can now deduct up to $40,000 in state and local taxes—up from the previous $10,000 cap.Note: The full benefit phases out for households making over $500,000.
Mortgage Interest Deduction Becomes PermanentA longtime homeowner tax break is now cemented into law. This gives peace of mind to buyers counting on tax savings.
PMI Deduction ReturnsIf you're paying private mortgage insurance (PMI), you can now deduct it again—something that had been in and out of tax law for years. This could mean meaningful savings, especially for first-time buyers.
Affordable Housing Credit ExpansionA big boost in tax credits aims to create over 1 million new affordable housing units nationwide by 2035—welcome news for renters and developers alike.
New “Trump Accounts” for FamiliesParents can now set up special savings accounts for children, with a $1,000 annual tax credit. These funds can be used for education or a first home purchase down the road.

🗣️ Neil’s Take

🎙️ “While not every homeowner will see the full impact of this bill right away, the SALT deduction lift and mortgage interest deduction protection are real wins—especially here in the Northeast. These provisions help protect equity-rich homeowners and give new buyers better tax footing.”—Neil Caron, Area Sales Manager, CMG Mortgage

🏡 Who Benefits Most?

Homeowner Type	Potential Benefit
High-income, high-tax state residents	Increased SALT deduction could lower tax bills significantly.
First-time buyers	PMI deduction and long-term mortgage interest tax breaks may tip the scale.
Families with kids	Trump accounts and child tax enhancements boost future planning.
Developers & advocates	Low-income housing incentives promise long-term supply growth.

⚖️ RSL Perspective: The Tradeoff Truth

It’s not all sunshine and tax refunds. Critics are concerned about the $3+ trillion projected deficit increase and deep cuts to Medicaid, food assistance, and green energy programs. For every winner in this bill, there may be those who feel left behind.

At ReadySetLoan, we always recommend talking with a trusted financial advisor or tax professional to see how these changes affect your specific situation.

🏁 The Finish Line

Whether you’re house-hunting in Connecticut or simply planning your financial future, the Big Beautiful Bill delivers some much-needed tax relief—but only if you know how to use it. At ReadySetLoan, we’re more than just mortgage guides—we’re your go-to partners for navigating real estate policy changes.

Want to see how these updates impact your homeownership goals?

Visit ReadySetLoan.com and connect with our team of housing experts today.