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    lthuong23's Avatar
    lthuong23 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 13, 2012, 07:17 AM
    How much money would I get back from my tax refund if I had a mortgage
    I have just bought a house with a mortgage $320,000, rate 3.625%/year. The lender estimates that I have to make the monthly payment for that house is $2100 including $1386.40 principle and interest+taxes 350+mortgage insurance 238.13.
    My question is how much money that I would receive back from IRS with these monthly expenses?
    Looking forward to your response,
    Thanks
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
    Senior Member
    		  
    #2

    Jul 13, 2012, 07:26 AM
    You would only benefit form mortgage interest and property tax deduction if you are able to itemize (meaning your itemized deductions are higher than the standard deduction).
    The standard deduction for 2012 for a single person is $5950 (married 11900).
    The standard deduction or itemized deduction reduce your taxable income. So if your marginal tax rate is 25% for example, you would save 25% of the amount you can deduct in taxes.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Jul 13, 2012, 07:40 AM
    Generally owning a home will be like having another child. Given your mortgage it might even be worth 2 children. It also depends on your taxes.

    Invest in tax software like Turbo Tax or Tax Act and you can do What If scenarios.
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