2007-01-29 00:49:10 · 3 answers · asked by bizziewoman 1 in Business & Finance ➔ Taxes ➔ United States
making 13 payments will give you a bigger tax deduction since you are paying more interest. however, it is in your best interest to apply the extra money towards principal. this will help reduce future interest you will owe on your mortgage.
2007-01-29 00:57:21 · answer #1 · answered by tma 6 · 1⤊ 0⤋
Pay extra towards the principal, absolutely. You will save much more in interest than you pay against the principal.
This will reduce the taxes you have to deduct on your taxes but you will pay less on your overall mortgage.
2007-01-29 09:04:53 · answer #2 · answered by ? 7 · 0⤊ 0⤋
Payments of principal deliver NO tax benefit; only interested may be deducted. However, it is common practice that any extra payments (i.e. 13th month) get applied toward the principal anyway.
2007-01-29 08:54:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋