Mortgage Payment Strategy to Maximize Your Tax Write-Off for 2018

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Filed under: Financial Planning

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The end of 2018 is just a few weeks away, and many people are considering last-minute options to reduce their tax burden for the year. Are you worried about a big tax bill because you had a strong year financially? The year isn’t over yet, which means that you still have time to take a few proactive steps to manage your tax burden.

Paying January’s Mortgage in December

One strategy that you might consider is making your January mortgage payment before the end of the year. This extra payment will give you more mortgage interest to write off in 2018. But, keep in mind that you’ll have less mortgage interest for your 2019 write-offs.

If you need the deduction this year, then it might make sense to make the early payment. Of course, your best option is to talk to your accountant for personal recommendations. A financial professional will help you determine the best strategy for your tax filing this year.

Other Real Estate Considerations for December

Although many people are focusing on holiday parties and Christmas presents, you might think about a few proactive strategies if you are looking for other options to improve your family finances. For example, if you receive a holiday bonus or pay raise this year, then you might put that extra money towards an extra mortgage payment. Not only will you get ahead on your payment schedule, but you can reduce the principal on the loan making it easier to pay off before the end of the loan.

Also, don’t overlook the benefits of shopping for a new home if you are ready to upsize or downsize. Demand in the real estate industry tends to be a little lower during the holiday season, which means there is less competition. You might be able to snag a good deal on the home of your dreams. There’s no reason to wait until spring if you are ready to buy a new home!

Do you need personal recommendations for your mortgage? I’m here to help! Reach out to our team at Franklin Loan Center for more information about the mortgage strategies that will work for your family.

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