Mortgage Interest Deduction
What is a Mortgage Interest Deduction?
A mortgage interest deduction allows mortgage borrowers to reduce their income tax liability by listing the amount of mortgage interest paid as an itemized deduction.
How Does a Mortgage Interest Deduction Work?
Each year, a mortgage borrower pays a combination of interest and principal to the lender. The interest component is tax deductible, and a borrower may list the interest she paid on a mortgage during a given year as an itemized deduction on her tax return. For example, if a borrower paid $1,000 in mortgage interest in a given year, he or she may usually subtract that $1,000 from his total taxable income for that year.
Why Does a Mortgage Interest Deduction Matter?
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
