(Newswire.net — September 30, 2013) Centennial, CO — Taxes are an unsavory yet inevitable part of every person’s life, and with the fast approach of tax filing deadlines, taxes become an even heavier burden on Americans who are already struggling to pay bills on top of bills.
One of the most burdensome of these monthly bills is the dreaded mortgage payment. Thus any opportunity that can significantly cut the mortgage expense is like a welcome friend. Preferred tax treatment of mortgage interest expense is one of the factors that has generally made home ownership preferable to renting. An underused federal program, Mortgage Credit Certificates, has the ability to further enhance the tax advantages of home ownership and mortgage payments. After all, every dollar saved in taxes as result of a mortgage payment, has the effect of reducing the effective rate of interest on your home loan.
According to Kemper Lewis, a mortgage expert and continuing education trainer for the Colorado Real Estate Commission, “nearly all Home Buyers and Real Estate Agents that I talk to today have no Idea about this Federal Interest Rate Reduction Program that we offer at The Mortgage Company”.
So just what is a Mortgage Credit Certificate?
A Mortgage Credit Certificate (MCC) is an enhancement to a loan product allowed by the federal tax code. What an MCC allows a borrower to use is called a “tax credit”. This tax credit takes a percentage of the mortgage interest paid and basically deducts it directly from your annual taxes, based on your loan amount:
– $150,001 and greater ‐ 20% = no dollar cap
– $100,001 ≤ $150,000 ‐ 30% = $2000 dollar cap
– $100,000 or less ‐ 50% = $2000 dollar cap
But how can you take advantage of this before funding dries up?
Right away, you need to find an expert to help you out. In Colorado, The Mortgage Company has taken a front seat in this new program. One of The Mortgage Company’s goals is to inform those who don’t know about the little-known benefits of an MCC and help walk them through the steps necessary to #1 buy a home and #2 buy more home than they thought they could afford.