Mortgage Interest Credit

Mortgage Interest Credit

Depending on your annual income, you may qualify for a mortgage interest credit. In order to receive this credit, you will need a Mortgage Credit Certificate (MCC). The IRS will require the MCC in order to grant the interest credit so be sure to speak with a Loan Officer to find out if you qualify.

The Mortgage Credit Certificate allows first-time homebuyers to reduce tax liability dollar-for-dollar by a percentage of the interest paid on the mortgage. This credit can range from 20% to 35%, depending on the MCC program. However, any interest not included as part of the tax credit can still be eligible for home mortgage interest deductions on your federal tax returns.

If you purchased a home with the MCC this year be sure to have these handy when filing your taxes this season:

  • Mortgage Credit Certificate (issued directly after closing)
  • IRS Form 8396 (attach this to your 1040 form)

We recommend consulting with a tax professional so that you can best maximize your savings! And for additional information, contact one of our loan officers.

 

Related Posts

Buying a Home in a Seller’s Market Featured
Buying a Home in a Seller’s Market

We are in the midst of a booming seller’s market. In real estate, a seller’s market occurs when the demand for homes is greater than the supply. This is the inverse of what happens in a buyer’s market, which is when there is plenty of supply but not as much demand for houses. As the […]

May 07, 2021
Full Post
10 Obstacles to Avoid when Closing on Your Home Loan
10 Obstacles to Avoid when Closing on Your Home Loan

It takes some time to close even the most straightforward of home loans. These tips offer insight for avoiding pitfalls in between application and closing, so you can help make your loan process as quick and easy as possible! 1. Buying Large Items Avoid buying things like cars, boats, or other high-end items. Purchases like […]

April 28, 2021
Full Post
7 Ways to Avoid Mortgage Sabotage
7 Ways to Avoid Mortgage Sabotage

Homebuyers are often not aware of what can cause issues within the home loan process and potentially sabotage your goals. Read these tips to learn some ways to avoid home mortgage sabotage! Credit Cards and New Debt Do not apply for any new credit of any kind! That creditor will show up on your credit […]

April 21, 2021
Full Post

Connect With Us