AEM Mortgage Minute with Deanna Daughhetee

Mortgage interest is generally tax deductible, making homeownership one of the best ways to trim your tax bill. Mortgage interest is any interest you paid on a mortgage, home equity line of credit, or construction loan. When filing your taxes, refer to your 1098 form that was issued to you by your mortgage lender to determine how much interest is tax deductible.

In addition to mortgage interest, mortgage insurance premiums paid on mortgages taken out or refinanced during 2007 may also be tax deductible. This deduction was just added to tax codes this year.

Lastly, mortgage origination fees or discount points may also be tax deductible because both are forms of interest. To determine your total mortgage tax deduction, consult your tax advisor or visit http://www.irs.gov/.