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Mortgage Interest Tax Deduction Savings - Loan Love Explains Home Ownership Benefits.

SAN DIEGO, June 12, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that is dedicated to keeping new home buyers and experienced home owners updated on current news and events which could affect their home loan options or their home ownership experience. Loan Love continues to offer professional help to first time home owners and loan borrowers by offering tips on how to minimize payments on homes as seen in their in the newest article titled "Mortgage Interest Tax Shield (Maximize Your Savings)." In this article, Loan Love discusses to home owners on how to get the most out of mortgage interest tax deduction savings when paying off a new home.

The first year owning a home can be exhausting task, and as far as mortgage payments go, it only makes it more difficult. Luckily, one of the major advantages home owners have over renters is their access to deductions on their mortgage interest payments through a tax break. All mortgage interest payments are considered deductible as long as a home owner itemize and doesn't take the standard deduction. Loan Love's article goes into greater detail with the following:

"More good news? It isn't only your home's first mortgage that paves the way for a tax break via a mortgage interest deduction. If you refinanced to improve your cash flow picture, or secured a home equity line of credit or home equity loan, you also get a tax break. The IRS allows you to take a full mortgage interest deduction for equity loans or credit lines up to $100,000.

Even if you own multiple properties, in most cases you will still be able to fully deduct whatever mortgage interest you pay. For example, if you purchase a vacation home down the line, you will be able to deduct the interest for the mortgage you take out on it."

Mortgage interest rates can even be considered deductible for properties such as a boat or another similar piece of property if used as a primary or secondary living space. The Loan Love article explains to loan borrowers how they can apply for tax deductions by stating:

"The IRS allows taxpayers to deduct points in the same year they pay them if the following holds true:

1) The loan is for the purchase or construction of your primary residence

2) Payment of points is an established business practice for your area

3) The points you claim fall within the typical range"

However, the rules for tax deductions may apply differently from mortgage to mortgage. Such is the case with home owners who refinance, in which instead of the home owner deduction mortgage interest for the whole year, mortgage interest is instead deduction on a monthly basis over the life the whole mortgage loan. A home equity loan can also be tax deductible, but has its own set of rules as well.

The article makes it clear to first time home owners that even though owning a home may difficult, mortgage interest rate tax deductions can help home owners ease the burden on a home owner's wallet. "In fact, the mortgage interest deduction is the biggest personal tax deduction available to taxpayers. Its popularity with politicians has rarely dimmed and it is often help up as the pathway for making home ownership -- and the American dream -- attainable for the middle class.

Even so, the larger the home mortgage, the greater the deduction. It is the wealthiest tier of the middle class that comes out ahead with tax breaks from mortgage interest, though every home owner will benefit" says the article.

To learn more on mortgage interest tax deduction savings, please visit LoanLove.com to read the complete article.

Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, contact@loanlove.com

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SOURCE Loan Love
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Date:Jun 12, 2014
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