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Mortgage Overpayments and US Taxes

Mortgage Overpayments and US Taxes

Old Oct 19th 2017, 6:43 pm
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Default 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?

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Old Oct 19th 2017, 6:49 pm
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Default 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

Last edited by mrken30; Oct 19th 2017 at 6:52 pm.
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Old Oct 19th 2017, 6:53 pm
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Default Re: Mortgage Overpayments and US Taxes

Originally Posted by mrken30 View Post
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.
I can pay a maximum of 10% a year and yes, the mortgage is adjusted daily so the interest paid will be reduced
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