OLT.com Customer Service Knowledge Base
Support Center > Knowledge base> Article: Mortgage Interest Credit - Refinanced

Mortgage Interest Credit - Refinanced

Article ID: 59028 Print
Mortgage Interest Credit - Refinanced


Refinanced Mortgage
You can refinance your mortgage without losing this credit if your existing Mortgage Credit Certificate (MCC) is reissued and the reissued certificate meets all of the following conditions.

  • It must be issued to the holder(s) of the existing certificate for the same property.
  • It must entirely replace the existing certificate. The holder cannot retain any portion of the outstanding balance of the existing certificate.
  • The certified indebtedness on the reissued certificate cannot exceed the outstanding balance shown on the existing certificate.
  • The credit rate of the reissued certificate cannot exceed the credit rate of the existing certificate.
  • The reissued certificate cannot result in a larger amount on line 3 than would otherwise have been allowable under the existing certificate for any tax year.

For each tax year, you must determine the amount of credit that you would have been allowed using your original MCC. To do this, multiply the interest that was scheduled to be paid on your original mortgage by the certificate rate on your original MCC. The result may limit your line 3 credit allowed when you have a reissued MCC, even if your new loan has a lower interest rate.

If the certificate credit rates are different in the year you refinanced, attach a statement showing separate calculations for lines 1, 2, and 3 for the applicable parts of the year when the original MCC and the reissued MCC were in effect. Combine the amounts from both calculations for line 3. Enter that total on line 3 of the form and enter see attached on the dotted line next to line 2.

related articles

Article Details
Views: 1217 Created on: Jun 15, 2013
Date updated: Dec 01, 2021
Posted in: Credits

Poor Outstanding