1040 IRS tax return savings

The average person that files taxes gets between three to four thousand dollars on their income tax returns. If you get less then it is important to figure out all the tips and tricks to rake it in when it comes to April 15th for tax season. One way would be to increase your deductions such as the Mortgage Interest Tax Deduction.

Mortgage Interest Tax Deduction

If you want to increase your mortgage interest tax deductions it may be a good idea to make your January 2013 mortgage days ahead of the required payment date.  Next time you get your mortgages statement in the mail, take a moment to examine the breakdown of your payments. On Your mortgage lender’s mortgage statement, you will notice that the payment has several different parts, the principal, interest, escrow, and mortgage interest.

Here are details on each part of your mortgage payment:

  1. The Principal is the remaining balance of money that originally was borrowed.
  2. The Interest is determined by your mortgage rate and is a payment for the right to borrow the loaned money.
  3. Property Taxes which takes all tax bills and divides them into 12 monthly payments and included as part of your escrow account.
  4. Hazard Insurance which takes your annual home owners insurance bills and divides them into 12 monthly payments which is included as part of your escrow account.
  5. Private Mortgage Insurance (PMI) which may also be included into your escrow account.

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 on your Taxes

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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