by Madison Guy
Question by Cajun: Is it better to refinance a mortgage for a tax deduction or continue with my 15 year mortgage?
I have 10 1/2 years left on a 15. Single, retired and no dependents.Pension(60,000) Does it make sense to refinance?
Answer by ~daph~
it only makes sense if the mortgage interest is going to be enough for you to itemize…depending on how much you make (is your pension the only source of income?) your interest still may not be enough to allow you to itemize your deductions. Are you able to itemize your interest now? If you can, it may be beneficial for you to extend the terms…
Give your answer to this question below!
NO NO NO, dont refinance.
it makes no sense to pay 6 % intrest to get a 3% tax break.
Work on paying off your mortgage, becoming debt free and then donate to a charity.
you win 3 fold. 1- dont have the risk of owing on your house if you fall on hard times, 2-get a tax break, by donating to a charity, and 3- help others.
Dave Ramsey has great thoughts on this topic. He has great fiancial ideas.
Interest rates dropped to around 6.10% for a 30 year loan. What is your interest rate. Will you save money by refinancing? Your mortgage does not account for much of a deduction. You may want to stay the course.
It depends, but I would keep it, considering the following:
1) What are the closing costs? Will you pay a few thousand in points?
2) Keep in mind that every year you get to claim your mortgage on your taxes. I don’t know about your situation, but this makes a substantial difference in my annual tax return.