Whether you are already a homeowner or thinking about buying your first home, the new tax laws—officially known as the Tax Cuts and Jobs Act (TCJA)—will challenge how you think about your home loans, especially your Home Equity Line of Credit (HELOC).

What Changed

In addition to flatter tax brackets, TCJA eliminates many popular deductions for individual taxpayers, and puts new limits on those that remain. Whether you benefit from these changes. and to what degree, will be a function of where you live, how much debt you currently owe, who makes up your household, the type of debt you have, and how much you make.

To understand exactly how you will be impacted, you will need to work through a projection with a tax professional. Until you do, here is a summary of some of the key home-related changes.

• Mortgage interest remains deductible for most homeowners. The deduction is available on acquisition indebtedness – debt incurred in acquiring, constructing, or substantially improving a qualified residence –  that does not exceed a total of $750,000. The previous cap on total mortgage debt of $1 million remains in effect for existing mortgage holders.

• Property, state income, and local taxes, which had been deductible on your federal return, are now limited to $10,000. This is especially significant for individuals living in states with high income taxes and those in areas with high property taxes.

• Interest on home equity lines of credit, may no longer be tax deductible. This takes effect for tax years beginning after December 31, 2017, and the suspension remains in effect until 2025.

Offsetting the elimination of these deductions is a jump in the standard deduction. For 2018, the standard deduction will rise to $12,000 for individual filers and $24,000 for those who are married and filing jointly. For many households, this boost could more than offset the loss in their itemized deductions and lower their overall federal tax bill, even after their home-related deductions disappear.

But What About Those HELOCs?

Homeowners with home equity-based debt may want to meet with their Loan Officers, as soon as possible. With the Federal Reserve expected to raise the level of interest rates three times this coming year and most HELOCs priced to move up with them, the attractiveness of this type of loan would have diminished even without TCJA. Now without the deduction, HELOCs are likely to be even more expensive to use versus other alternatives.

Chief among the alternatives is a cash out refinance. With long-term mortgage rates still low, this type of borrowing enables HELOC users to retire their home equity loan product and combine the outstanding balance into a larger mortgage. Assuming the new mortgage does not exceed the $750,000 threshold, the interest paid would then qualify for the deduction for those still planning to itemize.

Given the degree to which the standard deduction rose, after meeting with your Loan Officer you should also discuss your circumstances with your tax professional to determine what course of action will lead to the best after-tax outcome for you.

Ready to get serious about homeownership? Then it’s probably time to start saving for a down payment. While down payments can seem like a challenge, they are really like any other goal you set for yourself, doable.

To succeed, think about the bigger goal in terms of smaller, more easily accomplished actions you can take to save money. Here are 12 things you can start doing today that can help you reach your goal, perhaps even within a year.

Nickel and Dime Yourself

Look at your expenses and what you’re spending money on, and then find opportunities to cut back. Try bringing lunch four days a week or carpooling to save gas money. Small cutbacks can really add up over time.

Set It and Forget It

Establish a high-yield savings account that is strictly for your down payment. You may even want to choose a bank separate from the one you normally use so you won’t be tempted to dip into your savings. Then, schedule an automatic transfer out of every paycheck into that account.

Up Your App Game

Find an app that will help you save and visualize your progress. Qapital links to your personal accounts and lets you establish “rules” based on your daily life. For example, you can set a weekly coffee budget and send the rest to savings when you come in under the amount.

Create a Waterfall

Concentrate on paying off high-interest debt, such as credit cards, one at a time. Once you pay one off, move to the next one. As you reduce your monthly debt payments, it should free up cash you can save for your down payment.

Get a Side Hustle

Whether it’s selling your knitted masterpieces on Etsy or driving for Lyft, divert the extra income toward your down payment.

Semi-retire Your 401K Contribution

Consider temporarily reducing your 401K contribution while you are saving for your down payment. Put aside the difference in your savings account until you’ve reached your goal. Once that happens, increase your contribution percentage to at least what it was previously.

Think Smaller

Decreasing your current housing expenses means you can put more away for a down payment. Moving to a smaller, less costly space for a short time can help you save money for a bigger, more permanent place to call home.

Ask to See the Benjamins

Include your relatives and friends in your savings goal. When a gift-receiving opportunity presents itself and you’re asked what you’d like for the occasion, answer, “Cash, please!”

Plan a Staycation

Instead of splurging on an expensive vacation this year, challenge yourself to find as many fun—inexpensive and free—things as you can to do and see in your hometown. With each ticket you don’t buy, or restaurant meal you don’t pay as much for, add to your savings account.

Hold a Real, or Virtual, Yard Sale

Letting go of those skis you haven’t used in five years will be easier if you know the profit will go toward a new home. Virtual sites like eBay and Facebook’s Marketplace make it easy to get your merchandise in front of potential buyers. It also means less to move!

Stash Your Raise

Congratulations! Your hard work over the past year was recognized. Now, pretend it never happened. Instead, continue to live off the amount of your old paycheck and put the remainder in your down payment savings account.

Look at All Your Options

Many organizations, such as the Federal Housing Authority, Veterans Administration, and U.S. Department of Housing and Urban Development, offer down payment assistance for qualifying borrowers. Taking advantage of one of these programs could greatly reduce the amount you’ll need to save and stretch the dollars you have accumulated.

Whether you follow all or just a few of these savings tips, achieving your savings goal could be easier than you think. They also could lead to your becoming a homeowner that much sooner.

Did you fall in love with your home at first sight?  For many homebuyers, the first step through the door seals the deal. They just feel right…at home. However, with time, love for your home is a lot like the love you feel for your family and friends. There are some things you need to get used to, and it takes some maintenance to keep the feeling going strong.

Show It Some Love

Fortunately, keeping the spark alive doesn’t require a major financial commitment. Often, it can be rekindled with some attention to the details.

1. Develop a new attitude. Replace worn towels and bed linens with fresh sets that offer more comfort and perhaps introduce a brighter or trendier color into your rooms. It can both lift your spirit and make your daily routines feel more luxurious.

2. Throw something other than shade. Try replacing your throw pillows and, perhaps, the area rug to create a whole new vibe if your living room no longer sparks your interest. Consider adding violets or reds for a romantic touch or go green to refresh your space ahead of the seasonal change.

3. Rekindle the flame. Your home’s fireplace may have been a selling point, but if you aren’t using it, ask yourself why. Not only are fireplaces romantic when it’s just the two of you, they are a good place for creating childhood memories with the whole family. Consider converting your wood burning hearth into one with gas logs. It creates the same cozy atmosphere but turns on and off from a single switch.

4. Add color to your life. The latest trends in kitchens show a move from monochromatic to two-tone color. Repainting cabinet doors may be all you need to see things in a whole new light.

5. Replace old hardware. Change out your knobs, pulls, and door handles for a refreshed look. Whether you switch from brass to crackled glass or hand-painted enamels, this simple step can literally reinvigorate the feel of your home.

6. Start looking up. New ceiling fans and fixtures can refine a room. They can also greatly improve the comfort level of a room, leading you to want to spend more time in it.  Better yet, there is an opportunity to save on energy.

Share the Love

While you’re taking the time to show some love to your home, don’t forget to extend your affections to the people who live there, too.  Perhaps, add a few dimmer switches or spread a few bouquets of flowers around to make any day seem special, perhaps even set out some chocolates or make your kids’ favorite dessert. Then, settle in to share the special days, from family movie night to Valentine’s Day, with those who make your house the place you love coming home to.

Ready to get serious about homeownership? Then it’s probably time to start saving for a down payment. While down payments can seem like a challenge, they are really like any other goal you set for yourself, doable.

To succeed, think about the bigger goal in terms of smaller, more easily accomplished actions you can take to save money. Here are 12 things you can start doing today that can help you reach your goal, perhaps even within a year.

Nickel and Dime Yourself

Look at your expenses and what you’re spending money on, and then find opportunities to cut back. Try bringing lunch four days a week or carpooling to save gas money. Small cutbacks can really add up over time.

Set It and Forget It

Establish a high-yield savings account that is strictly for your down payment. You may even want to choose a bank separate from the one you normally use so you won’t be tempted to dip into your savings. Then, schedule an automatic transfer out of every paycheck into that account.

Up Your App Game

Find an app that will help you save and visualize your progress. Qapital links to your personal accounts and lets you establish “rules” based on your daily life. For example, you can set a weekly coffee budget and send the rest to savings when you come in under the amount.

Create a Waterfall

Concentrate on paying off high-interest debt, such as credit cards, one at a time. Once you pay one off, move to the next one. As you reduce your monthly debt payments, it should free up cash you can save for your down payment.

Get a Side Hustle

Whether it’s selling your knitted masterpieces on Etsy or driving for Lyft, divert the extra income toward your down payment.

Semi-retire Your 401K Contribution

Consider temporarily reducing your 401K contribution while you are saving for your down payment. Put aside the difference in your savings account until you’ve reached your goal. Once that happens, increase your contribution percentage to at least what it was previously.

Think Smaller

Decreasing your current housing expenses means you can put more away for a down payment. Moving to a smaller, less costly space for a short time can help you save money for a bigger, more permanent place to call home.

Ask to See the Benjamins

Include your relatives and friends in your savings goal. When a gift-receiving opportunity presents itself and you’re asked what you’d like for the occasion, answer, “Cash, please!”

Plan a Staycation

Instead of splurging on an expensive vacation this year, challenge yourself to find as many fun—inexpensive and free—things as you can to do and see in your hometown. With each ticket you don’t buy, or restaurant meal you don’t pay as much for, add to your savings account.

Hold a Real, or Virtual, Yard Sale

Letting go of those skis you haven’t used in five years will be easier if you know the profit will go toward a new home. Virtual sites like eBay and Facebook’s Marketplace make it easy to get your merchandise in front of potential buyers. It also means less to move!

Stash Your Raise

Congratulations! Your hard work over the past year was recognized. Now, pretend it never happened. Instead, continue to live off the amount of your old paycheck and put the remainder in your down payment savings account.

Look at All Your Options

Many organizations, such as the Federal Housing Authority, Veterans Administration, and U.S. Department of Housing and Urban Development, offer down payment assistance for qualifying borrowers. Taking advantage of one of these programs could greatly reduce the amount you’ll need to save and stretch the dollars you have accumulated.

Whether you follow all or just a few of these savings tips, achieving your savings goal could be easier than you think. They also could lead to your becoming a homeowner that much sooner.

If you are like many U.S. homeowners, you are entering the New Year with higher property values and, depending what part of the country you live in, with dreams of higher temperatures as post-holiday winter weather hits. Then again, you may be more intent on making improvements to your home in anticipation of a "staycation" later this year. In either case, as well as those involving milestone events like family reunions and college tours, a cash out refinance may make your goal more affordable.

Why This Makes Sense

A cash out refinance involves accessing the equity that has built up as your home’s value increased over the last few years and you’ve repaid the principal portion of your mortgage. This amount builds within your home as equity while you continue to pay the same mortgage amount each month. That equity would be freed up if you were to sell your home, but there is also another way to access it.

Replacing your current mortgage with one of a higher value gives you access to the money built up via your home’s equity. Depending on the current interest rate environment, a refinance can sometimes even be done at a lower rate. When that occurs, your monthly payment may remain close to the same as your current payment even though you have a larger mortgage.

If you currently have a shorter-term loan or adjustable-rate loan, you may also find that a cash out refinance may also benefit you. In these situations, you can refinance into a fixed-rate mortgage ahead of an expected rise in interest rates and/or lengthen the term of your loan, which could potentially lock you into a lower monthly payment than you might otherwise have had.

Regardless of the circumstances, when you refinance using a cash out loan option, you receive a cash payment that can be used for any purpose you would like, including achieving other financial or life goals.

Cash Out to Achieve Other Goals

• Retire student loans
• Finance a wedding
• Buy an investment property
• Put a down payment on a vacation home
• Pay off medical bills
• Help offset elder-care expenses
• Make home improvements
• Pay down credit card debt
• Take a once-in-a-lifetime trip
• Start a new business
• Pay for a child’s education

Borrowing From Yourself

The preferred use of a cash out refinance is one that improves your financial situation—such as paying for home improvements that might further boost your home’s value, starting a side business, or repaying higher interest debt like student loans or credit cards. However, the extra cash also enables you to invest in experiences that will improve your family’s quality of life and create lasting memories. 

That might mean a vacation property that your family can enjoy for years to come through a timeshare, fractional ownership program, or the outright purchase of a vacation home. Many such properties, especially second homes, may offer the added advantage of being an investment with the potential to create a small stream of rental income when your family isn't using them.

While escaping to warmer weather is a goal many share, the versatility of a cash out refinance allows you to accomplish any number of goals by essentially borrowing from yourself to pay for improvements that can have lasting impact on the quality of your family's life.