Economics, Econometrics and Finance
8 years ago

Refinancing your mortgage could save you thousands in taxes annually!

Journal of Real Estate Literature
The Tax Impacts of Home Mortgage Refinancing: An Analysis and a Model
Rich Fortin, Stuart Michelson

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Study reveals fixed rate mortgages may cost borrowers up to 7%

Credit Expansion
Insurance Dynamics
1 view
Economics, Econometrics and Finance
4 years ago

Mortgage interest rate hike could slash mortgage demand by 3.5%.

Credit Expansion
Economics, Econometrics and Finance
7 years ago

Diversified mortgage portfolios: the key to secure home financing success!

Credit Expansion
Ageing Research
Robust Optimization
1 view

This paper explains how refinancing a mortgage can affect taxes and provides a model to help investors make informed decisions. By considering interest rate tax effects, the breakeven point for refinancing varies from two to six years for a 200,000mortgageandfromtwoandahalftotenyearsfora200,000 mortgage and from two and a half to ten years for a 200,000mortgageandfromtwoandahalftotenyearsfora100,000 mortgage. Taking into account the lost interest deduction increases the breakeven time by about 50%. The researchers developed an Excel model to analyze different scenarios involving mortgage amount, term, and interest rate.