Any tax breaks for refinancing?

[Jsme]

My current mortgage company has mailed me an offer to refinance my current mortgage at a lower interest rate and a year shorter time on the loan for a smaller payment amount.

I am thinking about refinancing. Are there any tax advantages to refinance?

 

[njcarita]

My current mortgage company has mailed me an offer to refinance my current mortgage at a lower interest rate and a year shorter time on the loan for a smaller payment amount.

I am thinking about refinancing. Are there any tax advantages to refinance?

Tax advantages no............ but refinancing saves you lots of money, by paying less interest during the life of the loan.

 

[wmharley]

if you pay points, you might be able to deduct it. Also, if you prepay taxes, then if you qualify (taking deductions) it might help you.

The interest of course, you can claim on your deductions if you have more than the standard.

 

[clh2]

If you would be paying points to refinance - you can amortize them over the life of the loan on your taxes, but this usually doesn't amount to a huge tax break in any one year.

Although - I'm not one to pay points at a refi - so this odd bit of tax knowledge has never been of benefit to me!