2006-07-27 04:55:04 · 6 answers · asked by Freddy R 1 in Business & Finance ➔ Renting & Real Estate
No you dont get taxed on the money you pull. But your house does get reassessed to current taxes in that county.
Tip: If you pay out of pocket on the closing costs than you can get that back at the end of the year. Consult your tax consultant. If you refinance the closing cost meaning using the equity to pay for the closing costs than you dont get to write that off. Found out the hard way on this one and I am telling everyone
2006-07-27 05:28:53 · answer #1 · answered by Openthathouse.com 4 · 1⤊ 0⤋
Are you asking if you have to pay income taxes on money you BORROW against the equity in your house? If so, the answer is no.
2006-07-27 11:58:37 · answer #2 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 0⤋
Your state and or county may have mortgage tax. New York, Florida and Maryland are the three common states that have mortgage tax. In Maryland, you have to pay the tax on any new money but in FL and NY you have to pay that tax anytime you take out a new mortgage. Also, your property taxes will have to be paid by the new mortgage company (if they are due). If you escrow your taxes now, whatever money is in that account will either be deducted from your mortgage payoff or will be sent back to you 30 to 45 days after closing.
2006-07-27 16:54:11 · answer #3 · answered by jake_deyo 4 · 1⤊ 0⤋
You won't get taxed on the money as income because it is equity in your house.
2006-07-27 12:31:41 · answer #4 · answered by KYRealEstateGuy 4 · 0⤊ 0⤋
no, you do not have to pay taxes on money that you take out when you refinance.
2006-07-27 12:07:33 · answer #5 · answered by thetoothfairyiscreepy 4 · 0⤊ 0⤋
No, it is tax-free money since it is not income.
2006-07-27 12:28:19 · answer #6 · answered by Anonymous · 1⤊ 0⤋