Recent Calculations
Use the mortgage tax savings calculator to determine how much your mortgage payments could reduce your income taxes. The interest paid on a mortgage, along with any points paid at closing, are tax-deductible if you itemize on your tax return. Use this calculator to see how this deduction can create significant tax savings.
Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on qualified residences for up to $750,000 in total mortgage debt (the limit is $375,000 if married and filing separately). Any interest paid on first, second or home equity mortgages over this amount is not tax-deductible. If you already have outstanding mortgages on other qualified residences, this may limit your deduction. Our calculator limits your interest deduction to the interest payment that would be paid on a $750,000 mortgage.
Annual interest rate for this mortgage.
Annual effective interest rate, after taxes are taken into account. Please note that in addition to the $750,000 mortgage debt limit; this calculator assumes that your itemized deductions will exceed the standard deduction for your income tax filing status. If your itemized deductions don't exceed your standard deduction, the benefit of deducting the interest on your home will be reduced or eliminated. **STANDARDDEDUCTION_CURRENT_DEFINITION**
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.
Monthly principal and interest payment (PI).
The marginal Federal tax rate you expect to pay. **TAXTABLE_CURRENT_DEFINITION**
The marginal state tax rate you expect to pay.
The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.
Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount. As long as the points paid are not a broker's commission, they are considered tax-deductible in the year that they were paid.
Any other fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.
A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.
Annual percentage rate after taxes are taken into account. Unlike your after-tax interest rate, the APR after taxes takes closing costs into account.