Here’s a mortgage tip every homeowner can use before Christmas. Make your January mortgage payment in December. If you do this you will receive a larger deduction on your income taxes. The mortgage interest you pay by making this payment in December is counted for your next income tax deduction. By making this one payment you will increase your mortgage interest deduction by approximately 8%.
If you decide to do this don’t just pay the principal on top of your December mortgage payment. Make both payments for December and January; you’ll have to pay the principal and interest for both months to receive the increase in your mortgage interest deduction.