Question:

How to calculate my mortgage tax rebates?

Answer:

Use the services of a tax advisor. Mortgage tax rebates as any tax deductions need to be calculated precisely according to IRS rules. Unless you are a certified accountant yourself, using the services of one is most advisable.

In general, you could estimate your home loan rebates knowing the basic IRS rules regarding homeownership tax benefits.

Firstly, mortgage tax deduction applies to mortgages on first and second homes for a combined total of $1.1 Mil. Total acquisition indebtedness (IRS term) allows $1 M and includes any mortgage loan used for home purchase or rehab; home equity indebtedness allows for a second mortgage of up to $100,000 to be considered for tax deduction, if taken for home improvement purposes and no cash back is allowed. Different rules apply for refinances.

Loans made before October 14, 1987 are considered grandfathered and are exempt from the abovementioned limits and restrictions.

Once again, unless you have experience filing complicated tax returns, you are advised to use the services of a tax professional.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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