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Old 08-10-2006, 09:18 AM
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Default Re: Want to lower tax refund amount but how?

Quote:
Originally Posted by JBinKC
As for prepaying a mortgage it won't increase your interest expense one cent as you are paying off principal and not interest.
Instead of prepaying the principal, you can pre-pay one months interest to increase your deduction for the year. It is the most beneficial if you only have enough deductions to itemize every other year. It doesn't change how much you pay, just the timing. But you need to make sure that your mortgage company applies the extra money in the way that you intended.
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