Tax Benefits for Interest Only Loans?

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I know what the cons are of an interest only mortgage, but are there any positive points to an interest only loan in regards to tax benefits? Thank you for your time.

  1. Reply
    Daphnie J
    May 2, 2011 at 2:12 am

    The interest you pay on you mortgage is tax deductible. Your lender will send you a 1099 stating the total interest paid for the year.

  2. Reply
    Casey C
    May 2, 2011 at 3:08 am

    Assuming interest rates are the same, you’ll pay the same amount in interest every single year on an interest only loan. I guess you get a slightly better tax advantage (literally a couple of dollars) with an interest only loan, but that’s only becuase you aren’t paying down the balance like on a 30 year fixed mortgage.

  3. Reply
    Wayne Z
    May 2, 2011 at 4:03 am

    You never want to pay interest just to get a tax deduction. You can’t come out ahead.

    Not only should you pay principal on a mortgage, you should pay extra principal if you can afford it.

  4. Reply
    mister ed
    May 2, 2011 at 4:27 am

    there are none!!!

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