In addition to helping you get the financing you need to purchase the home of your dreams, a loan from PrimeLending Atlanta can help you when it comes to your taxes! And since we are in the midst of tax time, we wanted to share some ways we can help make the best deals in home financing even better come tax season:
- Private Mortgage insurance – if you had to pay PMI on your loan, you may be able to deduct the premiums you pay for your main home and your non-rental second home. This is only if your income is less than $100,000 gross, but you may still be able to deduct the premiums paid in the current tax year.
- Mortgage interest paid at settlement – the amount that you pay at closing toward your mortgage (as long as it is a mortgage of a value less than $1 million) can be deducted from your closing settlement. This deduction would need to be itemized on Schedule A of Form 1040.
- Points paid on your mortgage – discount points, if paid to obtain your mortgage, are included on the list of normal income tax deductions and can be utilized if they came as part of the purchase of a home. You can also use refinance points, but they must be paid over the entire life of the loan.
- Loan interest – on some specifics loans, like home improvement loans and construction loans, you can deduct the loan’s interest amount. You should be careful with both of these, as there are certain qualifications to both. Ask your loan officer or tax professional for assistance and clarification as to whether your home project has a chance of enjoying tax exempt status.
To learn more about how you can benefit during tax time from our loan options, contact the PrimeLending Atlanta offices at 770-615-4613.