Frequently Asked Questions
- What Happens to My Tax Break?
- My Income Changes From Month to Month - Will It Work For Me?
- Why Can't I Just Make Extra Principal Payments Each Month?
As you are probably already aware, you receive a deduction for interest paid on your mortgage. You will still be paying interest on your mortgage, it will just be paid off sooner. This may decrease the amount of your deduction. You may be decreasing your deduction, but you will be saving thousands of dollars in interest. Consult your tax accountant about all tax related questions. Remember, you may also be able to deduct the interest paid on your Home Equity Line of Credit.
Yes! The program allows for adjustments to your income. It will take those adjustments and recalculate your new interest savings and the amount that you should pay toward principal.
You could. You could take all of your discretionary income and pay it toward your mortgage each month as a principal payment. This, in effect, would put your checking account at zero every month. If you happen to have any extra expenses (car repair, new glasses, etc), all your money would be at the mortgage company with no way of getting it back. Instead you use the bank's money (in the form of a Home Equity Line of Credit), along with discretionary income, to send to your mortgage principal. If you have an emergency and need any extra funds, they are available through your Home Equity Line of Credit.