% Mortgage Loans… What's The Catch mortgage refinance calculator with taxes?
While there are several different types of 1% mortgage loans, there are really only two major keys to winning with a 1% mortgage loan. The first key is to make sure the loan is set up correctly from the beginning. And the second is to make sure you are using the loan correctly to gain the most benefit. First, let’s talk about how the loan works. Then we’ll get into how to set the loan up correctly so you can reap the financial rewards these mortgage loans have to offer. To start with, 1% mortgage loans have payment options. Each month when you get your mortgage statement you will have the option to make a 30 year fixed payment, a 15 year fixed payment, an interest-only payment, and a minimum payment at 1%. Although you are given several payment options, you should only select the 1% minimum payment

Why We Used This free mortgage refinance Calculator?
Because if you wanted to make a 30 year fixed, 15 years fixed, or interest-only payment, you would be better off getting that type of loan. Typically, these payments are higher with a payment option mortgage loan. If you select the 1% minimum payment your first benefit will be a significant monthly payment reduction. Your mortgage payment will likely be cut in half. Of course, this is a pretty attractive first benefit for most homeowners.To compound the effectiveness of selecting the 1% minimum payment you should save what you save. For instance, let’s say you refinanced your home with a 1% mortgage loan, paid off all your credit cards, and reduced your monthly payment by $1,000 a month. Now, if you save that $1,000 a month for yourself instead of giving it to your creditors, you will have $60,000 in cash at the end of five years - And that’s with a zero percent return. Here’s the second benefit to selecting the 1% minimum payment option

Tax savings mortgage refinance calculator excel.
If you make an interest-only payment your mortgage balance will stay the same. If you make a 1% minimum payment you are actually paying less than interest only. Therefore, you are creating deferred interest which makes your mortgage balance increase each month. Before you freak out, keep in mind that deferred interest is mortgage interest and is therefore tax-deductible. Let’s say your home is going up in value to $2,000 a month. The 1% mortgage loan will allow you to take a small piece of that appreciation, say $500 a month, and turn it into a tax deduction. So you are taking a small piece of your equity each month and turning it into a tax deduction. If you did not do this, all of your appreciation would be locked up in equity. Equity is terrific and is certainly one of the many benefits of homeownership. But investing in equity will get you a zero percent return. No one is going to cut you a check each month for the equity in your home. As a matter of fact, if you wanted to get the equity out of your home you would have to sell your home or get a loan. And you better qualify or you will not be able to get a loan. So why not take a small piece of your equity each month, turn it into a tax deduction, and at the same time save $1,000 a month for yourself? You will still have plenty of equity but with a 1% mortgage loan, you will have cash AND equity. If you do this for any length of time you will come out way further ahead financially than if you did a regular 30 year fixed or an interest-only mortgage loan. By the way, if the deferred interest is a concern, try making bi-weekly payments. Making a bi-weekly payment will reduce, and in some cases eliminate the deferred interest all together. Which means your mortgage balance would not increase.