How does the Mortgage Credit benefit you?

• You will receive a dollar for dollar tax credit which is applied on your Federal Income Tax Return.
• The credit amount you receive will qualify you for a larger first mortgage loan.
• You can take advantage of the tax credit every year for the life of the original first mortgage. 
• If you refinance, you are eligible to apply for a Reissued Mortgage Credit Certificate.

How much Mortgage Credit would I receive?
The Mortgage Credit you receive is based on the amount of Mortgage Interest you pay annually.

For Example:
Mr. Jones qualified for a first mortgage loan of $350,000 at an interest rate of 5.5% for 30 years.  He purchased a home in a Non-Targeted area which qualifies him for an MCC tax credit of 15%.

The tax credit amount will be determined as follows:

1. $350,000 x 5.5% = $19,250 (estimated first year’s mortgage interest)
2. 15% (tax credit rate) x $19,250 = $2,887.50 (yearly tax credit amount)
3. $2,887.50 / 12 months = $240.62 (monthly funds available for a larger 1st mortgage)
4. $19,250 -$2,887.50 =$16,362.50 (interest paid which still qualifies as an itemized deduction)

By using the MCC monthly credit of $240.62 per month, Mr. Jones has increased his purchasing power by approximately $42,000.