Welcome > Resources > Mortgage Calculators > Determine Tax Savings ...

Mortgage Tax Savings Calculator

Interest paid on a mortgage is tax deductible if you itemize on your on tax return. So are points that are paid to lower your interest rate. Use this calculator to determine how much you could save in income taxes. Click on the "View Report" button to view the results in detail.

Definitions

Mortgage amount

Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible. Home equity loans are limited to $100,000 or the amount of equity you have in your home. Our calculator limits your interest deduction to the interest payment that would be paid on a $1,000,000 mortgage.

Interest rate

Annual interest rate for this mortgage.

Interest rate after taxes

Annual effective interest rate after taxes are taken into account. Please note that in addition to the $1,000,000 mortgage debt limit, this calculator assumes that your itemized deductions will exceed the standard deduction for your income tax filing status. If your itemized deductions don't exceed your standard deduction, the benefit of deducting the interest on your home will be reduced or eliminated. For 2002 the standard deductions were $7,850 for married couples filing jointly, $3,925 for married couples filing separately, $4,700 for singles, and $6,900 for heads of household. You should also be aware that the total tax savings may be less for higher incomes that have their allowable itemized deductions phased out.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Monthly payment

Monthly principal and interest payment (PI).

Federal tax rate:

The marginal federal tax rate you expect to pay.

State tax rate:

The marginal state tax rate you expect to pay.

Annual Percentage Rate (APR)

A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.

APR after taxes

Annual percentage rate after taxes are taken into account. Unlike your after-tax interest rate, the APR after taxes takes closing costs into account.

Loan origination percent

The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.

Discount points

Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount. As long as the points paid are not a broker's commission, they are considered tax deductible in the year that they were paid.

Other fees

Any other fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.

The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

"A model of how the Internet can facilitate the process of deciding where to send your children to school" - America's Best School Profiles by The Heritage Foundation Pennsylvania Public, Private and Charter Schools: Compare them using these top-rated, comprehensive reports.   Schools in Yardley, Newtown, Upper Makefield and Lower Makefield

Disclosure Laws >Read the Fine Print Many states require the seller of a home to fill out a real estate disclosure statement when transferring the title. The disclosure is designed to reveal any material defects in the home to the new owner. When buying a home, take the time to read the fine print of the disclosure form. Look for a section that asks the seller to indicate the material defects that exist in the home's major systems. Most forms will specify interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, and the electrical and plumbing systems. As the buyer you will want to know of defects in any of these areas. Sellers are required to note the presence of environmental hazards or zoning violations. They must disclose if there are any encroachments or easements, or walls or fences shared with adjoining landowners. Room additions or repairs made without the necessary permits or not in compliance with building codes must be noted. Sellers must disclose citations or lawsuits against the property. If any such conditions appear on the disclosure form, consult with your real estate agent immediately regarding how to proceed with negotiation. See All Tips In The "Disclosure Laws" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  In what real estate market are more than 90 percent of home sales cash transactions? A  Palm Beach, home to princes, politicians, and CEOs, has homes from 2,000 sq.ft. condos to 56,000 sq.ft. estates. See More Real Estate Trivia >

Jane Johnson Prudential Fox & Roach Realtors 1010 Stony Hill Road Yardley, PA. 19067 Preferred number: (215) 630-1467 Direct Office Line: (215) 504-7557 Fax: (215) 504-1794 Office: (215) 504-7500 Email: janejohnson@NUMBER1EXPERT.com Working hard to help homebuyers and homesellers realize their dream is my goal. Loving my job is KEY to providing the top-notch service you expect, and the highest net profit YOU DESERVE! Your real estate transaction represents your most valued financial asset. Why not let my Value Creation Specialist skills work towards your home buying and selling needs? Prudential also leads the industry in advertising and marketing with more print, photo, and Internet advertising than any other agency. At PaHomeCatcher.com, featured listings are promoted on a network of the most visited home search web sites such as NUMBER1EXPERT.com ,123Movers.com, RealEstateABC.com and many more. I also have an "Enhanced Listing Feature" option through Realtor.com so that my listings are guaranteed to get unlimited description space, additional photos, and scrolling text headlines! Being an Accredited Home Staging Realtor also provides you with a valuable service. Staged homes help homeowners prepare their homes for sale to realize the highest price in the shortest amount of time possible! Did you know that homes that are professionally staged get 7 to 10% more than asking price with an average listing period of 10 to 14 days? As a Luxury Home Specialist, I provide an excellent array of Fine Home Marketing options as well as knowing the Luxury Home market in Bucks County. Fine Homes will continually be featured on PaHomeCatcher for the Luxury Home buyer. So be it a historical home, a waterfront property, a town home, a rancher, a classic colonial, a contemporary, or an investment property, get EXCEPTIONAL services in Beautiful Bucks County to catch your next purchase or sale! Click here for more Luxury Home information. Click here to learn more about Home Staging TREND copyright notification: 2008 TREND All Rights Reserved TREND is the source of the Broker Reciprocity content on all web pages displaying property information Broker Reciprocity allows participants who hold a current, valid real estate broker’s license to advertise their own and other participants aggregated active listing information through downloading and placing contend on the participant’s public access website. Property information being provided on or through this website is for the personal, non-commercial use of consumers and such information may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Some of the properties which appear for sale on the website may no longer be available because they are for instance, under contract, sold or no longer being offered for sale. Property information displayed on website is deemed reliable but is not guaranteed. The data relating to real estate for sale on this website appears in part through the TREND Broker Reciprocity(SM) program, a voluntary cooperative exchange of property listing data between licensed real estate brokerage firms in which Realty Professionals of America participates, and is provided by TREND through a licensing agreement. This site is monitored for scraping. The information provided by this website is for the personal, non-commercial use of consumers and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Some properties which appear for sale on the website may no longer be available because they are under contract, sold or are no longer being offered for sale. Information is deemed reliable but not guaranteed. www.PAHomeCatcher.com is brought to you by Jane Johnson NUMBER1EXPERT™ in real estate for Yardley, Newtown, Upper Makefield and Lower Makefield, Pennsylvania Read Jane Johnson's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

NUMBER1EXPERT®
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.