Will I get more back on my tax returns if I have an interest only loan vs. a 30 year fixed? - interest only vs fixed
It is the interest that the franchise should be so, you first have no bearing on your tax return (assuming that interest rates are the same as loans). After a while the only low-interest loans will tend to give you a deduction, but because you pay more interest because the balance would not be repaid, as in a fixed rate mortgage Regular. Personally, I do not think that's a good thing, because the amount that will save you taxes, pay a fraction of the amount of additional interest.
Friday, January 15, 2010
Interest Only Vs Fixed Will I Get More Back On My Tax Returns If I Have An Interest Only Loan Vs. A 30 Year Fixed?
Subscribe to:
Post Comments (Atom)
3 comments:
I will be two loans at the same rate. Each loan payment for 30 years reduced the primary (original amount) was low. Ways to pay less interest on each payment. As you pay more interest on interest only loans, you get a larger tax deduction.
Now for the math TOP. The maximum federal tax is 35%. If you pay $ 10,000 interest, "save" not more than $ 3,500 in taxes. That is, it has the bank $ 10,000 for the now not the IRS $ 3,500. The remaining of $ 6,500. If you think this is a good idea to send me $ 10,000, and they send you $ 4000 They are $ 500 in advance, and I pay my house in 10 years.
First, it depends on their nature (of course). Only the interest tax deductible. Secondly, because the interest is calculated on the loan would be the same interest. For example, would R 300,000 E / S loan, with interest at 7% interest during the term of the loan equal to the loan period. Not change the amount of interest with the director. Well, if you have a set of addjustable I / O, the interest rate changes depending on whether a regular ARM over LIBOR. I / O loans are more risky (and) with higher interest rates than fixed loans, so it is best to stick to a fixed frame (when) loans and debt / income do. In the long run if you were an I / O, to provide tax relief to be achieved, would be the same as a fixed percentage (taking into account the interest rates the same for both) are.
More or less. If you are) more interesting (which is probably just to pay interest in a loan, you'd find a larger deduction than would have been paying more interest, thereby reducing their taxes, but not near the amount of additional interest, "pay d.
Post a Comment