Mortgage Credit Certificate (MCC)

For the right customer, the Mortgage Credit Certificate , or MCC, is a godsend.  For first-time homebuyers (not having owned a primary residence in 3 years) that qualify within the Indiana income limits, it provides a tax credit for a percentage of the mortgage interest paid throughout the year.  Keep in mind that a tax credit is different than a tax deduction.  With a tax credit it is a dollar for dollar rebate at the end of the year.  The percentage is 20-35% of your yearly mortgage interest depending on your loan amount.  This ends up being a significant amount!  Using a simple example, if your loan amount is $100,000 and your interest rate is 5%, you will pay $5000 a year using simple interest.  With a tax credit of 20% your end of year rebate from the MCC program on your taxes would be $1,000.  Of note, the registration fee for this program is .5 points (half of one percent) of your loan amount which is $500 on the $100,000 loan example.  Very worthwhile considering you make back your initial investment within the first 6 months.  The tax rebate lasts as long as you have your mortgage.  Bottom line, if you are a first time homebuyer that qualifies, you don't want to miss the opportunity to utilize this tax benefit.  If you have specific questions regarding this, please call (317-563-1122) or email (chris@chrisminorteam.com)

Thanks!