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Mortgage Refinancing - Mortgage Refinancing - Tax Advantages of Taking Out a New Home Mortgage Loan If you are sitting on the fence regarding mortgage refinancing, the tax advantages you could gain may be enough to push you over. There are a number of tax deductions available for homeowners ranging from debt consolidation to Private Mortgage Insurance premiums. Here are several tips to help you decide if the tax advantages of mortgage refinancing are right for you. Mortgage Refinancing For Debt Consolidation When refinancing your mortgage loan to consolidate your bills you are simply borrowing more than you owe on your current mortgage. The difference between the new loan amount including what you owe on the old mortgage could be paid to you in cash. You might use the cash to pay off your bills including the interest you pay on the mortgage debt is fully tax deductible. Mortgage Refinancing Because of Private Mortgage Insurance If you are currently paying for Private Mortgage Insurance including absolutely cannot obtain of paying the premiums, mortgage refinancing may allow you to deduct these premiums from your Federal income tax. the tax deduction is only available for mortgage contracts originated in 2007, which is why you will need to refinance the loan in order to take advantage of it. Additionally, you need to meet the income requirements in order to qualify for the deduction. To qualify fully, your income needs to be less than $100,000. Homeowners with income greater than the but below $110,000 could qualify for a partial deduction. If your income is above $110,000 per year you could have to wait for Congress to extend the deduction to everyone. You might learn more regarding your mortgage refinancing options, including costly mistakes to avoid with a free, six-part video tutorial.
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