Consolidating debt into mortgage calculator
Starting 2018, Home equity loans will no longer qualify for a tax deduction unless they are used to buy, build or substantially improve the taxpayer's home that secures the loan.
To calculate your current loan-to-value ratio, divide your current mortgage balance by the approximate value of your home.
Please note that in addition to the 0,000 mortgage debt limit, this calculator assumes that your itemized deductions will exceed the standard deduction for your income tax filing status.
If your itemized deductions don't exceed your standard deduction, the benefit of deducting the interest on your home will be reduced or eliminated.
(Current mortgage amount) / (approximate home value) = loan-to-value ratio If you want to cash out some home equity to pay off high-interest credit card debt, add the amount of debt you’re paying off to the loan amount, like this: (Current mortgage amount) (credit card balance to pay off) / (approximate home value) = loan-to-value ratio Here’s an example: Let’s assume your current mortgage balance is 0,000 on a home worth approximately 0,000, and you’d like to pay off ,000 in credit card debt.
Your calculation would look like this: (0,000 ,000) / 0,000 = 0.7 or 70% Since your loan-to-value ratio is less than 80%, you can cash out enough equity to pay off your credit card debt without having to pay for mortgage insurance.