2006-07-23 10:23:11 · 3 answers · asked by arashed30 1 in Business & Finance ➔ Personal Finance
You can no longer deduct home mortgage interest in excess of the purchase price of your home unless you out on an addition. If you paid 90,000 for your house and it is now worth 200,000, you can only deduct the interest on the first 90,000 that you borrow. If you have not exceeded the purchase price, you should get between 15- 28% of the interest you pay each year back.
2006-07-23 10:29:17 · answer #1 · answered by Daniel Z 6 · 1⤊ 0⤋
Unless you itemize, you won't get anything extra back. And if you itemize, would depend on your tax bracket - if your bracket is 15%, you might get as much as 900 back the first year depending on what you used the money for and what the 1st mortgage balance is. As you pay down the loan, tax benefit would decrease each year since you'd be paying less interest.
2006-07-23 18:56:32 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
That depends on your tax rate. It is never a good investment to pay interest over taxes
2006-07-23 17:27:44 · answer #3 · answered by Bill 6 · 0⤊ 0⤋