Buying your first home comes with costs and possibly stress, but there’s at least one potential silver lining. If you’re within income limits, you might be able to qualify for a mortgage credit certificate, also called a mortgage interest credit certificate or MCC.
What is a mortgage credit certificate? It could save you money when you file your taxes and make it easier to pay your mortgage each month. Learn more about this mortgage certificate, who is eligible, how to apply, how to claim the tax credit and what happens if you refinance.
What is a mortgage credit certificate?
A mortgage credit certificate allows qualifying homeowners to claim a refund for a portion of the interest paid on their mortgage each year, up to $2,000. A state or local housing finance agency administers the MCC program (not all states have them).
An MCC is not a tax deduction. Instead, it offers a dollar-for-dollar tax credit to eligible homeowners, applied against their federal income tax. Each state sets a limit on the percentage of the total mortgage interest that can go toward the $2,000 credit: In Florida, for example, the credit is limited to 30 percent of the interest paid.
For more information on a mortgage credit certificate visit the Scoop
Comments(1)