Your Personal Taxes
With a lower interest rate on your home loan, you will have less interest to deduct on
your income tax return. That, of course, may increase your tax payments and decrease the
total savings you might obtain from a new, lower-interest mortgage.
You should be aware of an Internal Revenue Service (IRS) ruling with respect to points
paid solely for refinancing your home mortgage. IRS regulations require that interest
(points) paid up front for refinancing must be deducted over the life of
the loan, not in the year you refinance, unless the loan is for home improvements. This
means that if you paid a certain number of points, you would have to spread the tax
deduction for those points over the life of the loan. If, however, the loan or a portion
of the loan is for home improvements, you may be able to deduct the points or a portion of
the points. Check with the IRS regarding the current rulings on refinancing, particularly
if you are using the new loan to make home
improvements. |
REFINANCE
Refinance Considerations
Refinance Once, Then Do It Again
Build Home Equity Faster
Get Your Hands on Some Cash
Trade your ARM for Fixed Rates
Mortgage Refinance Costs
Analyze Your Savings
Paying Points For A Lower Rate
Your Personal Income Taxes
Consider Other Mortgage Programs
Deciding To Refinance |
