Mortgage interest and property tax payments are tax deductible.
You can deduct this interest from your income, and this can mean a large tax savings
Results of calculation
- Monthly mortgage payment (loan only)? The monthly payment on the loan itself
- Monthly escrow payment? The estimated monthly escrow payment. This is the estimated annual tax plus estimated annual insurance cost divided by 12
- Monthly mortgage payment (total)? The total payment (loan + escrow)
- Interest paid per year? The amount of interest you'll pay during the year of the mortgage
- tax savings on interest? The tax savings you'll realize by deducting the interest on your tax returns
- tax savings on property tax? The tax savings you'll realize by deducting the property tax on your tax returns
- Effective monthly payment? The effective monthly mortgage payment when tax savings are figured in
- Tax savings per month? The amount you save per month due to the mortgage-related tax deductions