Ask Terry Questions Refinance home in light of new income tax limits

Refinance home in light of new income tax limits

By Terry Savage on July 18, 2019 | Housing / Real Estate

We live in DuPage County Illinois and because of the high taxes here, were unable to claim all of our mortgage interest and real estate taxes with the new $10,000 limits on income taxes. We got hit hard with owing on our 2018 taxes. Our current mortgage balance is $234k at an interest rate of 4.125%. We have 13 yrs left on a 15 yr mortgage. Looking at another 13-15 yr mortgage. Don’t think we can do a 10 yr right now. We are in our early 60s, trying to dig out of debt from raising family and college. Resale value would be in the $420k range. Does it make sense for us to refinance?

Terry Says

Well, welcome to the club of not being able to deduct all your property and income taxes because of changes in the tax laws! And property taxes are only going up — making this an ongoing problem.

But none of that is part of the decision to refinance.  You only want to refi if you can get a much lower rate, not extend your time horizon, and pay no additional costs.  And there is only one way to find out, which is to get some refinancing offers.  Start at and see how much money you could save monthly and then decide whether it makes sense.



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