A Note From Your Mortgage Broker Jay
I’ve been watching property tax bills closely lately, and a few of my clients have seen their assessments jump more than they should have from 2024 to 2025. Under Prop 13, annual increases are capped at 2%, so when a bill comes in higher than expected, it usually means something deserves a closer look.
This isn’t traditional mortgage broker territory, but it directly affects what my clients pay every month, so I pay attention. I’m not a property tax attorney, but I can help you spot issues and walk you through the appeal process. At that point, your realtor becomes your best friend, because we’ll be hunting for the cheapest comps we can find, not the best ones. Funny how that works.
On the insurance side, the market has quietly improved. If you haven’t shopped your homeowners policy recently, there’s a good chance you’re overpaying. For most clients, that’s thousands per year. Send me your tax bill or insurance declaration page and I’ll take a look.
Keys to the Close: How Refinancing Should Work
Some of my favorite clients closed on a home in Santa Monica in May 2024, right near the peak of recent interest rates. I made them the same commitment I make to everyone: we’re going to keep chipping away at that rate until we can’t anymore, and I’ll never have you pay closing costs to do it. In a declining rate environment, paying closing costs usually means you won’t recapture them before the next opportunity.
Their starting rate was 8.375% on a $2,215,000 purchase. Since then we’ve taken it to 7.625%, then 7.125%, and now 6.5%. Their monthly payment dropped from $13,468 to $11,269. That’s $2,200 a month back in their pocket, just like two free mortgage payments a year, or roughly 1.5 months of Westside preschool tuition.
Their home was also appraised at $2.6M, so they’ve built equity simply by owning it. We’re not done. We’ll keep going as rates move lower. Find the home you love and make sure you can afford it. Everything after that is our job.
Opening Doors: What “No-Cost Refinance” Actually Means
Most people hear the word “refinance” and think it’s complicated. It’s not. A refinance simply means replacing your current mortgage with a new one, usually to get a lower interest rate and a better payment. Your old loan gets paid off, and you’re left with a new loan that ideally costs you less each month or over time.
Now the question I get all the time: is it really “no cost”? The honest answer is yes and no. There are always costs involved (appraisal, title, etc.), but in a no-cost refinance, those costs are covered by us or the lender. I call them “Free-fis” because you have zero out-of-pocket or hidden costs.
We monitor the market and reach out before most people even know there’s an opportunity, typically every six months, or sooner if the window opens. By the time you hear that rates have dropped, it’s often already too late. Our role is to identify those windows early and help you move before they disappear.
The Self-Made Buyer: Property Tax Write-Off
Starting in 2025, the cap on deducting state and local taxes, including property taxes, increases from $10,000 to as much as $40,000. For homeowners in high-cost areas like Los Angeles, that matters.
The standard deduction for married couples is around $31,500, which means you only benefit from itemizing if your total deductions exceed that number. This change makes that threshold much easier to clear.
On a $1.5M home with 20% down at 6.375%, here’s what the numbers look like:
- ~$66,000 in combined mortgage interest and property tax deductions
- ~$35,000 above the standard deduction
- Roughly $8,000–$9,000/year in potential tax savings at a $300K household income
- That’s about $700/month
The mortgage interest deduction itself didn’t change. The $750,000 loan limit is still in place. The real shift is that more of your property taxes are now deductible, making it easier for your total deductions to actually count. In simple terms: more of the money you’re already spending on your home can now reduce your taxes.
These are estimates. Every situation is different, and the real number depends on your income, filing status, and how your deductions stack up. Before you buy, it’s worth a conversation with your CPA.
Off the Clock: Family Air Guitar Bands
While I’d like to think I’m a man of many talents, music is not one of them. No one will ever call me the Songbird of Our Generation, but you don’t need talent to join a family air guitar band. You just need commitment and a captive audience under 4 feet tall.
Since I spend what feels like 40–60 hours a week in the car with my kids, we’ve developed a pretty tight set list. The heavy hitters for our completely imaginary, emotionally over-invested touring band include “I’ve Got A Feeling” by Black Eyed Peas, “Love Story” by Taylor Swift (you will get emotional, guaranteed), “Africa” by Toto (commit fully, blow out a vocal cord), and “Call Me Maybe” by Carly Rae Jepsen, which is less of a recommendation and more of a public safety announcement. Do not engage.
As always, if any of this raised a question about rates, what you qualify for, or whether now is the right time to make a move, that’s exactly what I’m here for. Jay Bridges, Priority Capital Corporation. 310-994-8900 | [email protected]