This tool estimates your average yearly tax savings on a mortgage loan and calculates your after-tax interest rate on the loan.
Loan settlement charges (or closing costs) are generally not tax deductible. However, charges for a specific interest rate (or discount points), may be amortized over the term of the loan if you are refinancing or fully deductible if you are purchasing a home.
Tax savings on a mortgage loan increase at higher income tax rates, all else remaining the same. This is because mortgage interest is generally tax-deductible, reducing the after-tax interest rate.
- How much can I borrow?
- How much will my mortgage payments be?
- How much will my adjustable rate payments be?
- Which is better: fixed or adjustable?
- Should I pay points to lower the rate?
- Which is better: 15- or 30- year loan term?
- How much should I put down for a new home?
- How much can I save in taxes?
- What will my closing costs be?
- Am I better off renting?
- Am I better off refinancing?
- What will my refinancing costs be?
- How can I reduce mortgage insurance costs?
- Which lender has the better loan?
- Which loan is better?
- How advantageous are extra payments?
- What home can I afford?
- How much will my interest-only payment be?
- Which is better: interest-only or traditional?