Want to increase your 2012 mortgage interest tax deductions? Consider making your January 2013 mortgage payment a few days early. It’s the end of December and, within a few days, you will receive, if you haven’t already, your mortgage lender’s mortgage statement. Study it, and you will notice that the payment is broken into 4 parts:
- Principal – a partial repayment on the original monies borrowed.
- Interest – based on your mortgage rate, a payment for the right to borrow said monies.
- Escrow – partial payments of your annual tax and/or hazard insurance bill.
- Mortgage Insurance – For some FHA, USDA and conventional loans, a payment to insure the loan against loss.
Of these 4 parts, it’s the interest section that matters for tax purposes. This is because, for many homeowners, mortgage interest is tax-deductible for the year in which it is paid. You can boost your 2012 mortgage interest tax deduction, therefore, by making your January 2013 mortgage payment before the new year hits. By doing so, your lender books the interest paid in 2012, and will include the sum on your IRS Form 1098.
BONUS SAVINGS FOR 2013: REFINANCE TO SUB-4 PERCENT RATES
Since 2009, mortgage rates have been on a steady, downward decline. In 2012, they have been above 4 percent for a total of 7 days. There are plenty of refinance opportunities for US homeowners. With HARP, the FHA Streamline Refinance program and other no appraisal mortgages allowing unlimited loan-to-value, there are few obstacles between today’s homeowners and access to the lowest rates of a lifetime. And, for homeowners with equity, the savings are equally large. Get started with a rate quote from Riverbank Finance. Even better than lowering your income tax obligation is lowering your monthly mortgage payments to the bank.
Request Information on How to Save Money
Whether you save more money or spend less money at the end of the day you will be better off. Call 1-800-555-2098 to speak with a loan officer today and review your options on how you can save more or spend less by reviewing your mortgage situation.
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