Mortgage tax savings in Maryland
Homeownership and mortgage debt have advantageous tax implications. You’re allowed to deduct from your federal taxes the amount paid in mortgage interest, the amount paid in property taxes and points paid. Since the bulk of your mortgage payment goes towards interest rather than principal during the initial years, deductions will be biggest then. Points are only deductible the year during which you paid them. When refinancing, points are deducted over the mortgage term. Use Mortgages.com’s Mortgage Tax Savings Calculator to figure out how much you’ll potentially save.
