On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
There are a number of reasons to consider refinancing: lower payments, lower interest rates, eliminating PMI payments, paying for home improvements, creating college funds, consolidating debt, purchasing a second home, or even financing a business venture.
When considering such a move, remember there are costs associated with refinancing and any decision to refinance will depend upon whether the overall financial benefits warrant the expense to refinance. Things to consider include:
- How long will you own the property? If you plan to sell in the near future, you may not save enough from refinancing to warrant the cost.
- Will the interest from the new loan be fully deductible? There are deduction limitations on mortgage interest, and you might find that a portion of the interest you pay on the new mortgage may not be deductible.
Is refinancing the right thing for you? Let us help you determine if the expense of refinancing is justified, or if there are other options that might be more practical. Taking the proper course of action now can have a profound impact on the future.