Question : Is it better to refinance a mortgage for a tax deduction or continue with my 15 year mortgage?
I have 10 1/2 years left on a 15. Single, retired and no dependents.Pension(60,000) Does it make sense to refinance?
- asked by Cajun
All Answers:
Answer #1
it only makes sense if the mortgage interest isgoing to be enough for you to itemize...dependingon how much you make (is your pension the onlysource of income?) your interest still may not beenough to allow you to itemize your deductions.Are you able to itemize your interest now? If youcan, it may be beneficial for you to extend theterms...
- answered by ~daph~
Answer #2
NO NO NO, dont refinance.it makes no sense to pay6 % intrest to get a 3% tax break.Work on payingoff your mortgage, becoming debt free and thendonate to a charity.you win 3 fold. 1- dont havethe risk of owing on your house if you fall onhard times, 2-get a tax break, by donating to acharity, and 3- help others.Dave Ramsey has greatthoughts on this topic. He has great fiancialideas.
- answered by net810
Answer #3
Interest rates dropped to around 6.10% for a 30year loan. What is your interest rate. Will yousave money by refinancing? Your mortgage does notaccount for much of a deduction. You may want tostay the course.
- answered by forktonguebush
Answer #4
It depends, but I would keep it, considering thefollowing:1) What are the closing costs? Will youpay a few thousand in points?2) Keep in mind thatevery year you get to claim your mortgage on yourtaxes. I don't know about your situation, butthis makes a substantial difference in my annualtax return.
- answered by DSL
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