If you are a home owner and currently have a vehicle loan, you may have access to another tax-deduction.* By making your car loan a mortgage backed auto loan, you may be able to write off your vehicle loan’s interest on your tax return.
With a mortgage backed auto loan, your vehicle is still used as the loan’s collateral. However, a lien is filed against the property you own. Once your loan is paid off, the lien against your property is released. If your paid interest, from your vehicle loan, totals more than $600 a year, you’ll receive a 1098 form at tax-time.
There is no charge for an appraisal on your home, no additional approval required, your auto loan payment amount, rate, and term remain the same. To make your car loan a mortgage backed auto loan there is only a one-time low $93 processing fee for mortgage preparation and recording fees.
