03/20/2026
While eligibility for tax benefits may vary, homeowners can often deduct the interest they pay on their mortgage. There could also be options to deduct property taxes up to a certain amount.
Also, most homeowners in California are sitting on an asset they don't even realize they have.
And no - it's not just their equity.
It's their property tax base.
Thanks to Proposition 13, many homeowners in Los Angeles and across California are paying property taxes based on values from 10, 20, even 30+ years ago - while market values have skyrocketed.
I've seen scenarios where:
* Market value: $2.5M
* Assessed value: $900K
* Annual tax savings: $15,000+
Now here's the part most people miss:
When you sell... that advantage resets.
And in today's market, that reset can cost more over time than a higher interest rate.
This is why some of the most sophisticated homeowners don't ask:
"Should I sell?"
They ask:
* Should I refinance instead of sell?
* Should I pull equity and hold the asset?
* Should I expand (ADU) instead of upgrade?
With the changes under Proposition 19, these decisions matter even more - especially when thinking about long-term wealth and generational planning.
This is where mortgage strategy becomes more than just rates and payments.
It becomes:
Tax strategy.
Wealth strategy.
Legacy strategy.
If you're a homeowner in California - or advising clients who are - this is a conversation worth having before making your next move. Reach out to discuss with me and we can put together a customized mortgage plan and go over some basic strategies regarding CA property tax benefits. As always, check with your tax advisor or CPA.
https://www.certaintyhomelending.com/AdamLeBlanc
