I know what the cons are of an interest only mortgage, but are there any positive points to an interest only loan in regards to tax benefits? Thank you for your time.
2007-12-17 12:47:34 · 4 answers · asked by sky 3 in Business & Finance ➔ Personal Finance
there are none!!!
2007-12-21 01:07:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Assuming interest rates are the same, you'll pay the same amount in interest every single year on an interest only loan. I guess you get a slightly better tax advantage (literally a couple of dollars) with an interest only loan, but that's only becuase you aren't paying down the balance like on a 30 year fixed mortgage.
2007-12-17 21:11:51 · answer #2 · answered by The Smart One 4 · 0⤊ 0⤋
The interest you pay on you mortgage is tax deductible. Your lender will send you a 1099 stating the total interest paid for the year.
2007-12-17 21:06:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You never want to pay interest just to get a tax deduction. You can't come out ahead.
Not only should you pay principal on a mortgage, you should pay extra principal if you can afford it.
2007-12-17 22:18:12 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋