Author Topic: Should I refinance from FHA to Conventional for bigger tax write off?  (Read 388 times)

cash2001

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Hi there- looking for advice about my first home purchase about a year ago. I have the option of refi into a conventional loan from the FHA I started with....my monthly payment would be the same (about 1,700) because interest rates have gone up since last June but I would have a bigger tax write off at the end of the year. My lender tells me the only up front cost is the approx 700 for an appraisal. I purchased the home for $285,000 and it is now worth about $300,0000. Thank you for the insight.

Dicey

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Re: Should I refinance from FHA to Conventional for bigger tax write off?
« Reply #1 on: September 14, 2017, 12:44:03 AM »
If you want valuable input, you need to be more specific. Are you hoping to avoid PMI? I really don't see what the advantage to paying a higher interest rate would be.
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srad

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Re: Should I refinance from FHA to Conventional for bigger tax write off?
« Reply #2 on: September 14, 2017, 08:04:36 AM »
I refinance for two reasons.  1, to make my payment  go significantly down.  2, to get cash out.  Are you getting either of those?  If not, why would you want to

Cwadda

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Re: Should I refinance from FHA to Conventional for bigger tax write off?
« Reply #3 on: September 14, 2017, 09:06:01 AM »
If you want valuable input, you need to be more specific. Are you hoping to avoid PMI? I really don't see what the advantage to paying a higher interest rate would be.

zephyr911

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Re: Should I refinance from FHA to Conventional for bigger tax write off?
« Reply #4 on: September 14, 2017, 10:16:20 AM »
Are you saying you want to spend more dollars in order to reduce your tax bill by a smaller number of dollars?
I have a  better idea...send me the extra money and deduct it from your taxes. I'm qualified to give tax advice and am also a Realtor and a military reserve officer with wartime deployments on my resume', so we can categorize my services however best fits your business activities.
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SeattleCPA

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Re: Should I refinance from FHA to Conventional for bigger tax write off?
« Reply #5 on: September 14, 2017, 01:22:34 PM »
This doesn't make financial sense. As others hinted, you don't profit by paying, for example, another $1000 of mortgage interest to get $300 of additional tax savings...

Also consider that if you take any cash out of the deal, the interest on that extra borrowing isn't actually a deduction.

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