First time home buyers can claim up to *20-50% of the mortgage interest paid each year as a tax credit with a mortgage credit certificate.
*depending on county and purchase price
Still allowing the remaining mortgage interest, property taxes, and mortgage insurance to be tax deductible.
MCC's are available in ALL counties of Colorado.
How does the MCC work?
For the life of the loan, MCC holders can claim a dollar-for-dollar credit towards your tax liability. This reduces the amount of federal taxes owed.
By changing your payroll withholdings, increasing your take home pay, buying a home can be much more affordable!
$150,000 at 5.5% fixed rate = $8,200 approx. in interest payments.
With a MCC 20% of $8,200 = $1,640 of the interest payments would be allowed to be taken as a tax credit toward the your federal income tax liability.
This would effectively add into your monthly income $136.67 ($1640 / 12 months = $136.67) when you change your withholdings through work.
If you have any questions or would like to find out more contact us!
* #1 M.C.C provider in the city and county of Denver , per Raymond James, formerly Morgan Keegan statistics released for 2009-2012 MCC issuance period.