THIS IS NEWS WORTHY! I recently found out about a tax credit that's available right now! A current client is going to receive around $1500 the first year!! That's incredible! If the mortgage applicants (single or both combined) make under $90,000 a year, buy a home under $475,000 (King county, other counties have different requirements) and are going to live in the house....you may qualify.
What you get; so, everyone gets to write of 80% of their mortgage interest on their taxes (that amount reduces your taxable income). With the MCC you get a dollar for dollar tax credit for the other 20% of the mortgage interest.
That mean that lets say you paid $10,000 in interest for the year. 80% of that, or $8,000 will reduce your taxable income (so if you made $60,000 now you will be taxed on $52,000). 20% or $2,000 will be a tax credit (this is the good part!) so if you are normally getting a refund of $1,000 you now get a refund for $3,000 ($1,000 plus $2,000).
This credit is for the LIFE of the loan! Check out this link for more info:
http://www.wshfc.org/buyers/MCCprogram.htm
Why isn't this spread around the NEWS??
