Below is a link to a mortgage calculator that can help you estimate the amount of tax benefit that may be generated by tax deductible mortgage interest.
To use this mortgage calculator to determine how much of a tax deduction your mortgage interest may provide, you will need to input information on your mortgage such as the balance and interest rate, as well as basic tax information including your tax rate and an estimate of itemized deductions. It will be helpful to have last year’s tax return to reference.
If you are not sure what tax rate you are in then look at your taxable income on line 43 of your 1040 tax form, and compare that to the 2009 tax rates in this table.
To see a simplistic example of how this calculation works see Should I Invest or Pay Off The Mortgage?
