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| JAN 25, 2019

When was the last time you reviewed your mortgage to make sure it was providing you with all the financial benefits possible? A mortgage is the largest investment many of us will make in our lives, but the longevity of a mortgage loan can make it easy to “set and forget,” resulting in missed opportunities for tax savings and other benefits.

There are several factors currently at play that make now a great time to meet with me to review your mortgage. Every client is unique, so it’s important to meet with me to make the most of your specific situation, but in general, here are a few things to consider:

Interest Deductibility. The Tax Cuts and Jobs Act of 2017 made some changes to the deductibility of interest paid on home equity loans, home equity lines of credit (HELOC), and second mortgages, but it did not fully eliminate the possibility. Under the new law, if the money received is used to buy, build, or substantially improve the home, the taxpayer may deduct interest paid on the loan. If the loan is used for another reason, such as to pay off student loans or credit cards, the interest is not tax deductible.

Interest Rates. By now you’re no doubt aware that the Federal Reserve has increased interest rates multiple times this year and is expected to increase them again before the year ends. It’s important to remember that even though rates have gone up, they are still running at 50 percent of the average historical mortgage rate. It’s not too late to review your current loan and take advantage of the opportunity to lock in a low interest rate before that rate is increased.

Rising Home Equity. Housing prices are on the upswing, so if you’ve owned your home for 5 years or more, you’ve likely accrued a healthy amount of equity.  If home improvements or other large expenditures are on your horizon, this may be the time to put that earned equity to work for you at a lower interest rate than would be possible through other loans.

Ready to find out what options might be the best fit for you? Give me a call to review your mortgage and take advantage of these opportunities now!


This content is provided for informational purposes only, is not intended as an offer or solicitation. Alerus Financial, N.A. and its affiliate subsidiary company make no representations or warranties as to the accuracy, completeness or timeliness of the information. The information is not intended to provide legal or tax advice. Individuals should consult a qualified legal or tax advisor for advice specific to their circumstances.

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