Consider Taxes When Refinancing Your Mortgage?

The ultimate goal of refinancing your mortgage is to pay less interest over the life of your home loan and have the ability to lower your monthly payment. That is a win-win situation. When the economic market conditions are good, and your application qualifications are met it is the best time to refinance your home loan. Having a lower interest rate on your mortgage means more savings for you and overall greater value over the life of the loan. It is important to speak to your loan officer and ask the important question about how much savings the refinance will give you. The numbers will speak for themselves, and you must weigh the pros and cons pertaining to you individually and especially your family if you have one.

Remember to factor in the associated fees and additional costs you might have to spend in order to refinance your Mortgage loan. Ask, Is it more beneficial? Do the benefits out way the overall costs? Another good question is, what are the Tax implications? In most situations paying less interest can be tied to less of a deduction in your mortgage interest in your tax return for that year you filed. Most homeowners deduct that amount of interest in taxes every year. Which is a good chunk of money deducted and is incredibly helpful in some tax situations. After refinancing it usually will reflect in paying less money in taxes on the mortgage previously. It is important to review your entire financial projection and pay close attention to where you fall in regard to specific tax brackets. In addition, weigh all of the relevant factors and consult your tax expert for guidance. There are various resources online and in your local community.

Do not be afraid to ask questions and really learn about these important topics that many homeowners have to face on a daily, monthly, and yearly basis. Strive to learn and be aware of the continually changing and fluctuating economic market when it comes to the value of your home, interest rates, and updated Tax laws, rules and regulations that could greatly impact you.

“Knowledge is power. Knowledge shared is power multiplied!”- Robert Boyce