Deduct Thousands in Taxes when Buying a Home
Mortgage Interest Tip:
As you probably know, mortgage interest is generally fully tax deductible. For example, being in the 28% federal tax bracket has the effect of lowering your borrowing costs by almost a third. The part of this equation that most people don’t consider is a “Move Up” home loan where you’re going from a 200,000 loan at 7% interest (approx $14,000 in interest deduction) to a $300,000 loan at 7% interest. (approx 21,000 in interest deduction) That extra $7,000 can usually be deducted right off of your income for the home interest deduction.
This applies to a “Move Down” bome purchase or a lower mortgage amount. Both are fine, just figure in the extra loss in home interest deduction when making that decision.
In the early years of a loan, much of the monthly payment is interest, so these savings can really add up. Tax savings are real dollars, so don’t forget to take this benefit into consideration as you make decisions regarding your mortgage financing. There are other things in a mortgage refinance or purchase that may provide additional tax deductions. Points when used to pay down the interest rate of the loan are generally deductible.
If you have additional finance or real estate questions, you can contact steve at steve@mrhomeloan.com and ask your specific question or call using the phone number listed below.
Steve Hoogenakker is a mortgage and finance provider that collects valuable information for people and offers most of it at no cost as a public service. He has different websites with thousands of articles to view and download. Steve would be happy to speak with you about you about your financing needs or questions.Here are some links to get that information:
http://www.mrhomeloan.com/articles/index1.html or http://www.homeseller.pro You can also reach steve at steve@mrhomeloan.com or reach Steve or Bob by phone at 612-363-1279. ATM Mortgage and MrHomeLoan.
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