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I've been kind of slow figuring this mortgage thing out
Posted by: Don C
Date: March 01, 2021 10:14PM
My property tax bill includes a $3,000 credit for having a mortgage. Right now, I pay more than $3,000 to my credit union in mortgage interest, but in two years, I will pay less than $3,000 per year interest. I will be making money each year until the mortgage is paid off to the tune of $10,000 over the remaining life of the mortgage.

Well, it is not like I am getting cash back, but the math is in my favor.

In looking through the abstract for this house, I noticed that a previous owner had a series of $1,000 home loans. Now I know why.

I have been paying slightly ahead on my mortgage payments, rounding up to the nearest $100, which over time has cut the length of the mortgage by three years. I think once I get to the under $3000 interest, I might stop making those additional payments and just let the mortgage run its course, saving me money.

If I am figuring this right, of course.
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Re: I've been kind of slow figuring this mortgage thing out
Posted by: GGD
Date: March 01, 2021 10:24PM
Do you have more details on this credit? I've never seen anything like that, and not sure why they would care how the house it being paid for.

In my county there is a property tax reduction if you're living in the property as your primary residence. It's $7,000 but it's a reduction in the assessed value of the home, not a credit towards the taxes. The tax rate is roughly 1%, so that works out to about a $70 reduction in taxes.
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Re: I've been kind of slow figuring this mortgage thing out
Posted by: mattkime
Date: March 01, 2021 10:24PM
>My property tax bill includes a $3,000 credit for having a mortgage.

Huh? Where?



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Re: I've been kind of slow figuring this mortgage thing out
Posted by: rgG
Date: March 01, 2021 11:12PM
What?
I have never heard of the taxing authority caring if you had a mortgage or not. Why should they?





Roswell, GA (Atlanta suburb)
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Re: I've been kind of slow figuring this mortgage thing out
Posted by: Don C
Date: March 01, 2021 11:43PM
Did not read it right. It is in fact a reduction in the assessed value of the property of $3,000, not a tax credit. Got to learn to read the form!

Changes those calculations rather significantly!

addition: looks like having the mortgage saves me about $75. Makes it a different story altogether. Sorry!



Edited 1 time(s). Last edit at 03/01/2021 11:48PM by Don C.
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Re: I've been kind of slow figuring this mortgage thing out
Posted by: MindMeld
Date: March 02, 2021 06:01AM
Whew! Thank you. I was getting ready to move to wherever you are until I read your last post.
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Re: I've been kind of slow figuring this mortgage thing out
Posted by: Acer
Date: March 02, 2021 09:24AM
Your $1000 loans by the previous owner...
Maybe he was caught in the fallacy of paying a mortgage and getting a tax deduction is "better" than no mortgage at all.
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