Mortgage Overpayments and US Taxes
 

Hi all, long time lurker - have learnt a lot from these forums and has helped answer a lot of questions, thanks for your input!

i have a question which i couldnt find an answer to: while in the US (on an L1A), we hope to overpay on our fixed rate mortgage. I just wanted to know if this has any tax implications, similar to those if you switched/remortgaged while in the States?

Cheers!

Re: Mortgage Overpayments and US Taxes
 

The tax benefit depends on the interest paid over the year. If you over pay, you may end up paying less interest, depends on the mortgage, and therefore increase your taxes. Unless you overpay a lot, it will be minimal.

This tool might be helpful

http://www.dinkytown.net/java/MortgageTaxes.html

Re: Mortgage Overpayments and US Taxes
 

I can pay a maximum of 10% a year and yes, the mortgage is adjusted daily so the interest paid will be reduced