So you’ve decided on the house, which has investigated the options of mortgage products, and you know which product you need. Have you taken into account the tax benefits being touted as an attractive benefit of the interest-only loan?
No, it is not. Nor are many consumers out there shopping for a mortgage loan. The impact of the mortgage can have on your tax return has not crossed his mind until he read the announcements of the mortgage companies are announcing that the only interest loan option. Wow, John P. Consumer says, did not realize it would be a huge tax benefit, sign up! Do you think that will really benefit from an interest-only loan, when it’s time to file your taxes?
Probably not, no one stops to think, even about the situation. The fact is, many consumers assume that these ads are gospel, especially because they are being managed by a mortgage company, you should tell the truth. And they do, not only the truth that applies to every situation. Every situation in this case, the average consumer purchase for a mortgage loan is probably not going to get much benefit from the tax deduction that comes along with mortgage interest payments. Not enough to justify the assets you are leaving to change. Or the years of extended mortgage payments to refinance when they can not afford the larger payment of principal and interest. Continue reading