You may be looking at your income, deductions, and taxes and thinking that you'd like to have MORE deductions to offset your taxes. If you are in this situation, I have a quick bit of advice to give you a little bump in your deductions: pay your January Mortgage payment a few days early! Unlike rent which is paid in advance at the beginning of a month, interest on a mortgage is always due at the end of the month - after the money's already been borrowed from the bank.
When you study a mortgage statement, you'll notice that it's actually a bill for the interest that accumulated during the prior 30 days. Quick Example: If you owe 300,000 on your mortgage at 5.5% interest, your monthly interest is $1375. If you are in the 33% tax bracket that additional $1375 of income reduction equals a tax reduction of $453.75! For a lot of homeowners, that mortgage interest is tax-deductible in the year in which it was paid.
I bet you are now wondering if you can make your February payment and get the same benefit?
When you study a mortgage statement, you'll notice that it's actually a bill for the interest that accumulated during the prior 30 days. Quick Example: If you owe 300,000 on your mortgage at 5.5% interest, your monthly interest is $1375. If you are in the 33% tax bracket that additional $1375 of income reduction equals a tax reduction of $453.75! For a lot of homeowners, that mortgage interest is tax-deductible in the year in which it was paid.
I bet you are now wondering if you can make your February payment and get the same benefit?
Reviews
Be the first to review Premier Mortgage Resources.
Write a Review
