Tax Tips For Recent Mortgage Refinancers

The Home Loan Expert team is ready for this Tax Day.  It’s actually April 18th this year thanks to the 15th falling on a weekend, so you have a little bit of extra time to procrastinate.  We do want you to know a few things though, if you refinanced last year (with us or with someone else).  When you get started, here’s some tax tips for homeowners from The Home Loan Expert.

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. Don’t forget, you’re also eligible to file for an extension, but you WILL have to pay your estimated taxes by the 18th or face a penalty.

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 in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?

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