The Home Loan Expert team is ready for this Tax Day. We do want you to know a few things though, if you refinanced last year (with us or with someone else). If you, like thousands of homeowners, took advantage of the low rates last year and refinanced. Remember that you can deduct “points” that you paid to obtain a home mortgage as interest. You can deduct the points on the mortgage that are related to home improvement or a home purchase. Other loans, like when you refinance your mortgage, have to be deducted over the life of the loan.
You can easily figure this out yourself. Divide your total points that you paid by the number of payments that you have to make over the life of the loan. If you refinanced with us we can give you all of that information if you just call and ask. If you paid, oh let’s say $2,000 in points on a 30-year mortgage (360 monthly payments), you could deduct $5.56 per payment, or a total of $66.72 for 12 payments. You can deduct points only for those payments actually made in the tax year.
If you are using the refinance to work on your home, and meet certain other requirements, you can deduct the points used for the home improvements during the last year, and the rest of the points spread out over the life of the remaining loan. If you’re refinancing for a second time, or are paying off a loan early, congratulations but remember there are advantages for you as well. You can use all of the not-yet-deducted points from that first financing, when you finish paying it off.
If your adjusted gross income is over $139,500, this may not apply to you. You will be limited in the deductions that you can make.
If you have more questions about ANYTHING mortgage related, we are always here. The Home Loan Expert, Ryan Kelley, doesn’t have that nickname for nothing. We’re a nationally ranked mortgage company that can answer any question and refinance almost any loan to a lower rate. Call us today at (800) 991-6494 and visit www.thehomeloanexpert.com for more information or to apply online. Nobody makes it easier than The Home Loan Expert, Ryan Kelley. If your interest rate is not in the 3’s call us for a refinance today and you can take advantage of this tax rule next year.