Mortgage Rates Hit New Lows

According to reports, average mortgage rates fell to their new lowest point, a historic 4.01% for 30-year fixed mortgages and 3.28% for 15-year fixed mortgages.

Despite these attractive interest rates, many potential homebuyers seem reluctant to shop for a home loan.

Remember that you may be able to claim a tax deduction for mortgage interest and/or mortgage points related to your home loan: If you are a homeowner who has taken out a mortgage loan to pay for your home, you can receive tax help by deducting the home mortgage interest you pay on your loan.

It’s important to understand this tax deduction as it can help lower your taxable income.

To take advantage of the mortgage interest tax help, you will need to itemize your deductions on IRS Tax Form 1040 (U.S. Individual Income Tax Return).

Fill out Schedule A to determine whether your itemized deductions exceed your standard deduction.

If they do, you will probably get more tax help by itemizing with the 1040 Form (rather than taking the standard deduction).

If you pay points when acquiring a new home, you may be able to get some tax help by deducting them on your federal income tax return.

Mortgage points can help lower your tax burden if you itemize your deductions on IRS Tax Form 1040 (U.S. Individual Income Tax Return), Schedule A.

For more information about these topics, please visit the following websites:

• www.washingtonpost.com/blogs/political-economy/post/mortgage-rates-fall-to-record-lows-again

• www.inman.com/news/fed-moves-economic-worries-send-mortgage-rates-new-lows

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