Savings Account Loan to Pay Down My Mortgage?

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If I take out a CD or savings account loan and apply that money exclusively to pay down my mortgage?
… will the interest paid under that loan (Even though not technically a mortgage) be tax deductible as mortgage interest provided I don’t use those funds for anything but to pay off/down my existing mortgage? Please advise. Thanks

I know this is crazy but I don’t have money in my savings, but here I am ready to buy a home with my husband. So do the banks or creditors actually check into your savings and checking accounts to see how much money you have?
If so, I might have to wait and that will suck.

home loans

get em’ while they’re blue – courtesy The Truth About Mortgage

15 Comments
  1. Reply
    stevefwb
    January 21, 2011 at 1:03 am

    no.

  2. Reply
    William
    January 21, 2011 at 1:25 am

    No. Deductible mortgage interest is interest you pay on a mortgage loan that secures the property. Interest paid on unsecured loans is not deductible regardless of what you use the loan for.

  3. Reply
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    January 21, 2011 at 3:16 am

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    January 21, 2011 at 3:23 am

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  7. Reply
    ♥Chastons Wifey♥
    January 21, 2011 at 4:28 am

    Yes,They will ask to see your monthly statement.

  8. Reply
    kankill_is_vegan
    January 21, 2011 at 4:33 am

    Not only will they ask to see your statements, but when the loan goes to underwriting, the underwriter may contact the bank to verify the funds. Do not lie and say you have money that you don’t. Also, DO NOT shuffle around money to make it appear as if you have more money than you do. This will be easily uncovered.

    If you have a savings and a checking, it is best to not move any funds around during the underwriting process and this could potentially delay your loan or cause it to be rejected based on not enough funds.

  9. Reply
    Terry F
    January 21, 2011 at 5:26 am

    Are you preparing to buy a home and claiming to have money in savings when you do not have it?

    Yes the lender will ask you to show proof of reserves such as savings accounts as part of the pre-approval process and, just before they provide the funds for the mortgage, they will verify those funds with your bank to be sure that you still have them.

    If you have money in savings, you are a better risk for the bank to lend money to. You, therefore, can get better terms on a loan or qualify when otherwise you would not qualify. Everything about your financial situation is important to a bank that is thinking of giving you a wheelbarrow load of cash to use in buying a home.

    They are only concerned about assurance that you will continue to make your payments. If you have cash in reserve, it is going to be much easier for you to live up to those commitments, especially if one of you should be injured, unemployed, sick, or unable to work for some other reason.

  10. Reply
    sandraafonso14
    January 21, 2011 at 6:24 am

    Esta foto tbm não tem jeito nenhum. Aprendam a tirar fotos a coisas mais bonitas pah

  11. Reply
    TheTruthAbout
    January 21, 2011 at 7:23 am

    it hurts more when it’s written in Portuguese

  12. Reply
    offplanpropertyexchange2007
    January 21, 2011 at 7:46 am

    Perfect image for our news story: Indian banks to down value real estate?

  13. Reply
    TheTruthAbout
    January 21, 2011 at 7:53 am

    Image used in It’s All About the Refis article

  14. Reply
    TheTruthAbout
    January 21, 2011 at 8:21 am

    Photo used in Fannie Makes it More Difficult to Qualify for Interest Only Loans, ARMs article

  15. Reply
    TheTruthAbout
    January 21, 2011 at 8:31 am

    Photo used in What is a Conventional Mortgage Loan? article

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