Mortgage Tax Savings Calculator

Interest paid on a mortgage is tax deductible if you itemize on your tax return. So are points that are paid to lower your interest rate. Use this calculator to determine how much you could save in income taxes. Click on the "View Report" button to view the results in detail.

http://www.dora.state.co.us/real-estate/index.htm; DHI Mortgage Company, Limited Partnership (DE) 7687 (MN) 20187723 (WI) 32292; DHI Mortgage Company, Ltd. (FL) CL 0701136; (GA) Georgia Residential Mortgage License 13591 located at 60 Bushwood Dr., Pooler, GA 31322 (HI) MB803 (IL)Illinois Residential Mortgage License MB 0005470 located at 850 S. Milwaukee Ave, Libertyville, IL 60048 (LA) RML2422-0 (MD) 8724 (NC) L-108350 (NM) 00679 (NV) 1347 and 134 located at 330 Carousel Pkwy, Ste 120, Henderson, NV 89014 phone 702-407-2700 (SC) MB-508200-0508200 and S-5437 (TX) 44608 and 1181-49104 located at 12554 and 12357 Riata Trace Pkwy, C-150, Austin, TX 78727 (WA) 520-CL-17125. .

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Definitions

Mortgage amount
Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible. Home equity loans are limited to $100,000 or the amount of equity you have in your home. Our calculator limits your interest deduction to the interest payment that would be paid on a $1,000,000 mortgage.

Interest rate
Annual interest rate for this mortgage.

Interest rate after taxes
Annual effective interest rate, after taxes are taken into account. Please note that in addition to the $1,000,000 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. For 2008, the standard deductions are $10,950 for married couples filing jointly, $5,450 for married couples filing separately and singles, and $8,000 for heads of household. You should also be aware that the total tax savings may be less for higher incomes that have their allowable itemized deductions phased out.

Term in years
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Monthly payment
Monthly principal and interest payment (PI).

Federal tax rate:
The marginal Federal tax rate you expect to pay. Use the table below to assist you in estimating your 2007 tax rate.

Filing Status and Income Tax Rates 2008

Caution: Do not use these tax rate schedules to figure 2007 taxes. Use only to figure 2008 estimates.

Tax rateMarried filing jointly
or Qualified Widow(er)		SingleHead of householdMarried filing separately
10% $0 - 16,050 $0 - 8,025 $0 - $11,450 $0 - 8,025
15% $16,051- 65,100 $8,026- 32,550 $11,451- 43,650 $8,026- 32,550
25% $65,101- 131,450 $32,551- 78,850 $43,651- 112,650 $32,551- 65,725
28% $131,451- 200,300 $78,851- 164,550 $112,651- 182,400 $65,726- 100,150
33% $200,301- 357,700 $164,551- 357,700 $182,401- 357,700 $100,151- 178,850
35% over $357,700 over $357,700 over $357,700 over $178,850
Source: http://www.irs.gov/pub/irs-drop/rp-07-66.pdf

State tax rate:
The marginal state tax rate you expect to pay.

Annual Percentage Rate (APR)
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.

APR after taxes
Annual percentage rate after taxes are taken into account. Unlike your after-tax interest rate, the APR after taxes takes closing costs into account.

Loan origination percent
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.

Discount points
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.

Other fees
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.

Information and interactive calculators are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy or their applicability to your circumstances. Further review is necessary to obtain an exact qualification.

The information provided reflects estimates of the monthly payments you are likely to incur based upon conventional program guidelines. Other loan programs are available and actual payments may be more or less. The tax rates, interest rates and insurance rates may be more or less than displayed. Your payment may include additional charges depending on your transaction. If you have less than 20% equity in your home, a monthly mortgage insurance payment may be required. Consult your DHI Mortgage Loan Officer for detailed information.

We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.



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This is being provided for informational purposes only and is not an offer of credit. All terms subject to credit approval, market changes and availability. DHI Mortgage Company, Ltd. Limited Partnership (AZ) BK-0901845 (OR) ML-2482 (WV) ML-22923; DHI Mortgage Company, Ltd., L.P. (CA) Licensed by the Department of Corporation under the California Residential Mortgage Lending Act 413 0364 (OK) SL006154 (VA) MLB-561 Licensed by the Virginia State Corporation Commission; DHI Mortgage Company, Ltd. 098377 located at 7600 E. Orchard, Ste. 165-S, Greenwood Village, CO 80111 phone 720-488-2098 LMB license 100018938. To check the license status of your mortgage broker, visit http://www.dora.state.co.us/real-estate/index.htm; DHI Mortgage Company, Limited Partnership (DE) 7687 (MN) 20187723 (WI) 32292; DHI Mortgage Company, Ltd. (FL) CL 0701136; (GA) Georgia Residential Mortgage License 13591 located at 60 Bushwood Dr., Pooler, GA 31322 (HI) MB803 (IL)Illinois Residential Mortgage License MB 0005470 located at 850 S. Milwaukee Ave, Libertyville, IL 60048 (LA) RML2422-0 (MD) 8724 (NC) L-108350 (NM) 00679 (NV) 1347 and 134 located at 330 Carousel Pkwy, Ste 120, Henderson, NV 89014 phone 702-407-2700 (SC) MB-508200-0508200 and S-5437 (TX) 44608 and 1181-49104 located at 12554 and 12357 Riata Trace Pkwy, C-150, Austin, TX 78727 (WA) 520-CL-17125. .