Quick answer: On a $1,000,000 Golden 80401 home with 20% down at 7.24%, the first year of payments carries about $57,666 in interest. The $750,000 debt cap trims the deductible part to about $54,321. For joint filers that is $22,121 above the standard deduction, worth about $5,309 in the 24% bracket.
By Katerina Veteskova, Colorado real estate broker license FA.100082955, eXp Realty, LLC
Buyers shopping near $1 million in Golden often ask me whether the mortgage interest deduction makes a bigger loan cheaper than it looks. It can, but only if you itemize, and the IRS limits how much debt the deduction covers.
This guide follows one example: a $1,000,000 purchase in the 80401 zipcode with 20% down, or $200,000, and an $800,000 30-year fixed loan.
How much mortgage interest can you deduct on an $800,000 Golden loan?
About $54,321 of the $57,666 paid in year one, because only the first $750,000 of debt counts.
IRS Publication 936 limits the deduction to interest on the first $750,000 of home debt taken out after December 15, 2017, or $375,000 if married filing separately. IRS Topic 505 repeats that limit for homes bought after that date.
When a loan is over the cap, the Publication 936 worksheet divides $750,000 by your average balance and applies that share to the interest you paid. One method in the publication finds the average balance by dividing the year's interest by the rate. Here, $57,666 divided by 7.24% is about $796,491, so the share is 0.942. That makes about $54,321 deductible and about $3,345 not deductible.
What does the $800,000 loan cost each month?
About $5,452 in principal and interest at 7.24%.
That uses the 7.24% average for the 30-year fixed that Freddie Mac published on October 29, 2026, down from 7.32% a week earlier. Property tax, homeowners insurance and any HOA or metro district dues are extra.
The loan also fits under the Jefferson County one-unit conforming limit of $862,500 in the FHFA 2026 county loan limit file, so it is not a jumbo loan.
Does the deduction beat the 2026 standard deduction?
For joint filers at this price, yes: $54,321 of interest alone clears the $32,200 standard deduction by $22,121.
In its tax year 2026 adjustments, the IRS set the standard deduction at $32,200 for married couples filing jointly and $16,100 for single filers. You claim either the standard deduction or your itemized total, so only the amount above the standard deduction lowers your tax further.
Counting the interest alone, that $22,121 cuts federal tax by about $5,309 a year in the 24% bracket, or about $442 a month. In the 22% bracket the savings is about $4,867. A single filer with the same loan clears the $16,100 standard deduction by $38,221, worth about $9,173 at 24%.
Get new Golden homes from $700K
Email me new Golden listings from $700,000 as they come on the market, so I can run the after-tax payment before I write an offer.
Do property taxes add to the write-off?
Yes, state and local taxes count toward itemizing, up to a cap.
IRS Topic 503 lists a combined limit of $40,000 for state and local taxes, or $20,000 if married filing separately, reduced for higher earners but not below $10,000. Check the figure for the tax year you are filing. Your Golden property tax bill and Colorado state tax both go in that bucket, and you can look up the current tax on a home in the Jefferson County property records search.
Should you put 25% down to stay under the $750,000 cap?
Not for the deduction alone: putting $50,000 more down changes the deductible interest by only about $259 in year one.
With $250,000 down, the loan is $750,000 and all of its interest is deductible, about $54,062 in year one. With 20% down, the deductible share is about $54,321. The extra cash does lower principal and interest by about $341 a month, from $5,452 to $5,111, so decide on the down payment by cash and reserves rather than by the cap.
When does the cap stop mattering on this loan?
Around payment 66, when the balance on the $800,000 loan drops below $750,000.
On the 7.24% schedule, the balance is about $754,952 after year 5 and about $743,823 after year 6, so from year 7 on all of the interest is deductible. Interest also shrinks as principal is paid down: about $57,085 in year 2 and $55,069 in year 5. With 20% down, any price up to $937,500 keeps the loan at or under $750,000 from day one.
Is $1,000,000 a realistic price in 80401?
Yes, it sits a little above the middle of recent sales.
Redfin put the 80401 median sale price at about $950K for the three months ending September 2026, with homes selling in around 23 days at 98.3% of list. Current listings are in the Golden homes from $700K, Golden 80401 homes from $700K and Golden $700K to $1M searches.
Should you itemize or take the standard deduction?
It depends on your loan size, your filing status and when in the year you close.
Itemize if:
- Your deductible interest plus state and local taxes is more than your standard deduction
- Your loan is near $750,000 or more and you have a full year of payments
- You keep your Form 1098 and property tax records each year
Take the standard deduction if:
- A year of interest stays under $32,200 for a joint return or $16,100 for a single return
- You close late in the year, so only a few months of interest land on that return
- Your other deductions are small and the loan is modest
Compare homes near this price in Golden homes from $700K, Golden 80401 homes from $700K, Golden $700K to $1M and Golden homes from $1.2M.
Where else can a $1,000,000 budget go near Golden?
Start with Golden homes from $700K, then look south to Morrison homes from $700K, Morrison 80465 homes from $700K and Morrison $700K to $1M.
East of Golden, compare Lakewood homes from $700K, Lakewood 80226 homes from $700K and Lakewood $700K to $1M. To the northeast, see Arvada homes from $700K, Arvada 80002 homes from $700K, Arvada $700K to $1M and Wheat Ridge homes from $700K. For the wider region, open Front Range $700K to $1M or Front Range homes from $1.2M. Buyers moving up can read trading up from $700K to $1.2M+, and buyers on a first purchase can start with first home in Jefferson County.
Broker view: "When a buyer tells me the deduction makes a bigger loan worth it, I ask them to run the after-tax payment with their tax preparer before we write an offer. The savings are real at this price, but they show up at tax time, while the full $5,452 payment is due every month." - Katerina Veteskova, eXp Realty, LLC
What this guide does not cover: Colorado state tax rules, the SALT phase-down math, points, mortgage insurance premiums, home equity loans, second homes, rentals, loans taken before December 16, 2017, the alternative minimum tax, FHA, VA and jumbo loans, property tax amounts, homeowners insurance and HOA or metro district dues. This is not tax advice, and a tax professional can run your own return.
Sources: IRS Publication 936 (2025), IRS Topics 505 and 503 and IRS release IR-2025-103, all checked November 3, 2026. FHFA 2026 county loan limit file for Jefferson County. Freddie Mac PMMS weekly survey, 7.24% for the 30-year fixed as of October 29, 2026. Redfin 80401 zipcode market data for the three months ending September 2026. The deduction and savings figures are my own arithmetic on an $800,000 loan, shown for illustration only.
Weighing a Golden purchase near $1 million? Call or text 720-646-4685, or request a tour.
Frequently asked questions
Can I deduct interest on a mortgage over $750,000?
Only part of it. For debt taken out after December 15, 2017, IRS Publication 936 allows interest on the first $750,000, or $375,000 if married filing separately. On an $800,000 loan at 7.24%, that works out to about 94.2% of the interest in year one.
Do I need to itemize to get the mortgage interest deduction?
Yes. The deductible interest goes on Schedule A, so it only lowers your tax if your itemized total is larger than the 2026 standard deduction of $32,200 for joint filers or $16,100 for single filers.
Will my lender tell me how much interest I paid?
Yes. Publication 936 says you will generally receive Form 1098 if you paid $600 or more of mortgage interest on one mortgage during the year, and the statement should be sent by January 31 of the following year.
Is an $800,000 loan a jumbo loan in Golden?
No. Golden is in Jefferson County, where the FHFA 2026 one-unit conforming loan limit is $862,500, so an $800,000 loan stays conforming.
Katerina Veteskova is a Colorado real estate broker (license FA.100082955) with eXp Realty, LLC. Call or text 720-646-4685, or request a tour.