Most people know that the mortgage interest they pay on the mortgage they used to purchase their home is tax deductible. Some people also DON'T KNOW about this tax deductions!
Dear BuildingCredibility.com visitor:
Certain mortgage interest that you pay on mortgages and home-equity loans can be deducted on Schedule A of your 1040 tax return. Let's talk about a good way to maximize the deductions you can take for interest you pay on mortgages:
Interest on home-equity loans up to $100,000 can be deducted no matter how you use the funds.
If you have a home equity loan that is secured by a mortgage on property, you can use the proceeds to pay off credit card debt, car purchases, and for other items that normally would not be deductible...up to $100,000. You can only deduct the maximum interest on home-equity debt if you have net equity in the property of at least $100,000 after taking out the obligations on the other existing mortgage(s).
When a home-equity loan is used responsibly to consolidate debt, some good tax deductions can be secured that otherwise would not be...this is a good thing! However, with the current mortgage market and some home values in question, lenders are tightening their guidelines on these and other types of mortgage products. Please call or email me if you have questions about this process.
Regards,
Eric Leigh, Mortgage Loan Officer
1419 N. MIdland Boulevard
Nampa, ID 83651
(208) 880-0316
http://www.ericsloans.com
eric@ericsloans.com
I am not a tax preparer or tax professional, so this blog entry should not be taken as legal advice. Please consult your CPA, lawyer, or tax professional for more information on the deductibility of mortgage interest.