TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 1

Question

I refinanced my home in 2016 but the mortgage interest I show on my 1098 is signifcantly lower than last year. Could my refinancing really lower it by $6K a year?

Forum|Forum|7 years ago
June 1, 2019
1 reply
0 views

No text available

TurboTax Deluxe Online

A

Anonymous

Yes, a refinancing can easily lower your annual mortgage interest by $6K per year (it did for me).

It depends on the principal balance you refinance, the change (reduction) in interest rate and how many months of the year the refinanced mortgage was in place.

Example: If you refinanced a $200,000 mortgage at 6% to a $200, 000 mortgage at 3% early in January 2016, your annual mortgage interest cost would drop by approximately $6K.

(Principal amount) X (Change in interest rate) X (Number of months with lower interest rate/12)

$200,000 X (6%-3%) X (12/12) = $6000