Refinance

[Slamz]

I'm fairly sure the mortgage interest deduction will be gone within 5-10 years, probably starting next year for high earners.

I'm betting they'll grandfather in the deductions, if they ever remove them. Otherwise I see it causing Housing Crisis #2 as more people get forced to foreclose due to effectively higher taxes.

The vast majority of homeowners don't use it, because they take the standard deduction.

Maybe if the vast majority of homeowners are married, filing jointly on a modest house or an old loan. If you're filing singly or if you have a newer loan or if it's just a large loan then your mortgage interest deduction alone will exceed the standard deduction.

Also ironically, everyone refinancing at these low rates is helping the government, since they have less to deduct.

It will still be less out of pocket for them, though. The amount you save in not paying extra interest exceeds the amount you save by having a larger deduction on tax day.

Unless maybe there's some edge case where by having a smaller deduction they end up in a higher tax bracket that results in them actually spending more money with a lower interest rate.