San Diego, CA (PRWEB) April 26, 2014
LoanLove.com is a borrower advice website that has quickly become a trusted destination for current news and expert loan guidance. The website empowers borrowers with first-class knowledge, valuable resources, and connections to top-rated industry professionals. A recent guide posted by the website continues to help home loan borrowers to find loans that they will love by explaining what a mortgage interest tax shield is and how they can take advantage of it.
The new guide from Loan Love titled, “Mortgage Interest Tax Shield (Maximize Your Savings)” says, “There are a lot of very good reasons to leave renting behind and join the ranks of home owners. But probably one of the biggest—and most commonly touted—is the ability to get a tax break by deducting the mortgage interest paid. If you are like most homeowners, nearly all of your mortgage payment every month is going toward interest and not your loan’s principle. The good news for taxpayers is that all that interest is deductible, as long as you itemize and don’t just take the standard deduction.”
The article also explains that borrowers may take a tax deduction not only for their first mortgage, but on any additional mortgages they may take on. For example, if a family decides to buy a vacation home, they may also deduct the mortgage interest from the loan they took out to buy that house. In some cases even the mortgage interest on a boat can be deducted if it has sleeping, cooking and bathroom facilities, and is used as a primary or secondary residence.
Loan Love says, “If you refinanced to improve your cash flow picture or secured a home equity line of credit or home equity loan, you also get a tax break. The IRS allows you to take a full mortgage interest deduction for equity loans or credit lines up to $100,000. Even if you own multiple properties, in most cases you will still be able to fully deduct whatever mortgage interest you pay. For example, if you purchase a vacation home down the line, you will be able to deduct the interest for the mortgage you take out on it.”
The article goes on to explain about deducting points and the limits to how much can be deducted from both interest and points. Lastly, Loan Love says, “It’s little wonder that the mortgage interest deduction is held up as one of the primary advantages of home ownership, at least from a financial standpoint. Forbes estimates that middle-class homeowners were able to save about $615 on average during the 2012 tax season, thanks to the mortgage interest deduction. In fact, the mortgage interest deduction is the biggest personal tax deduction available to taxpayers. Its popularity with politicians has rarely dimmed and it is often held up as the pathway for making home ownership—and the American dream—attainable for the middle class.”
For more information on this subject, click here to read the full article on LoanLove.com.