Well here we go, Mortgage Interest Limitation revisited for 2007 tax year.
Received one my first ones of the season, I think I know the answer, but will someone please confirm.
Refinance - $435,000
Costs $ 4,232
Loan Orig Fee $ 4350 (Amortize maybe over 30 years) ? use of funds is a ?
Creative Loan Broker ($500 processing Fee, $500 Underwriting Fee and $800 Doc Fee) plus accrued interest of $298?
Insurance and Taxes Impound 830
Payoff First (original acquistion debt) $137,997 with interest of $695
Payoff Second (Improvement Debt) $58,604
So these are part of the acquisition debt balance, correct?
Payoff Third (most likely equity debt, I can' trace) $32,189
Payoff Credit Card $ 2189 (Personal) within the $1000K equity debt
Payoff Auto Loan $ 6,417 (Personal) within the $100K equity debt
Balance - net check $ 185,399
They used approx $160,000 to purchase a partial interest in a second home.
All is secured on the primary home.
Anything over the $100,000 is limited on the mortage interest debt, correct?
So basic math, I have acquistion debt of $196,601
Equity Debt of $ 32,189 from above, plus costs etc. $54,494 plus the cash out of $185,399 = $239,893.
Limited to $100K so t/p is over limit by $139,893.
I know the numbers might not work totally , but just close proximity is good for this question.
Thanks for any responses,
Sandy
Received one my first ones of the season, I think I know the answer, but will someone please confirm.
Refinance - $435,000
Costs $ 4,232
Loan Orig Fee $ 4350 (Amortize maybe over 30 years) ? use of funds is a ?
Creative Loan Broker ($500 processing Fee, $500 Underwriting Fee and $800 Doc Fee) plus accrued interest of $298?
Insurance and Taxes Impound 830
Payoff First (original acquistion debt) $137,997 with interest of $695
Payoff Second (Improvement Debt) $58,604
So these are part of the acquisition debt balance, correct?
Payoff Third (most likely equity debt, I can' trace) $32,189
Payoff Credit Card $ 2189 (Personal) within the $1000K equity debt
Payoff Auto Loan $ 6,417 (Personal) within the $100K equity debt
Balance - net check $ 185,399
They used approx $160,000 to purchase a partial interest in a second home.
All is secured on the primary home.
Anything over the $100,000 is limited on the mortage interest debt, correct?
So basic math, I have acquistion debt of $196,601
Equity Debt of $ 32,189 from above, plus costs etc. $54,494 plus the cash out of $185,399 = $239,893.
Limited to $100K so t/p is over limit by $139,893.
I know the numbers might not work totally , but just close proximity is good for this question.
Thanks for any responses,
Sandy
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