i pay an extra 5% every month...just got the mortgage in june...no clue what my tax return is going to look like this year hopefully it's going to be as good as i'm hearing
tanner12oz said: just got the mortgage in june...no clue what my tax return is going to look like this year hopefully it's going to be as good as i'm hearingThis shouldn't be a mystery, and you shouldn't be formulating tax strategy based on what you "hear."
Try curling up in front of the fireplace with a copy of this:
Well we paid off our 2005-originated mortgage ($280K) in 2008 with A0R proceeds. We did a cash out refi ($260K) in early 2010 and we're just about to payoff the mortgage again. I'll probably refi it whenever uncapped high CB cards no longer are available. I just can't make up my mind!
Mortgage on my house I don't live at anymore is $1489 or something, I just pay $1600 because I like round numbers. Planning on selling for $50-60k profit after a year of ownership this spring.
07pilot4me said: i'm jealous. you must have gotten into some high % CD's before the rates plummeted. nice! Not really. I opened a HELOC to backstop the A0R funds that were used to pay off the mortgage. Then I earned the balance in high Cash Back cc churn over the last few years. I was also able to settle a large portion of debt in the recession.
i pay min on my 20 year mortgage, but i pay 7500 extra a month to business loan that can go to my house when i'm done and knock that thing out of the water!
geo123 said: cmatthes1 said: Just don't anybody go into something thinking spending more $$ in taxes is a good thing cause they give you a quarter or 33 cents back for every dollar you lose Sorry, I am not following. What does this have to do with my post above? My point is that it is not a mistake on many people's parts to automatically assume that their entire mortgage interest will be deductible when their incomes alone cause state income/sales taxes to exceed the standard deduction. The standard deduction is fairly low, so you do not need to be making a lot of money or to live in a high state income tax state to fall into the above category.
Married filing joint is $11,400 so your "savings" are ((state income tax + property tax + mortgage interest + deductions) - $11,400, or standard deduction value) * tax rate. But yes, if you are paying 8 or 9% state income tax you will get to the standard pretty quickly. In my state I only make it a few thousand over even with donations every year etc. Even at a few times the state average income.
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