Refinancing can be a great money-saving move. But it can also impact your taxes both positively and negatively.
From a tax implication perspective, refinancing is viewed differently than an initial mortgage. Because it’s seen as “debt restructuring,” the deductions and credits that can be claimed with a refinance aren’t as beneficial as when you initially took out your home loan.
Additionally, since the Tax Cuts and Jobs Act (TCJA) legislation was passed in 2017, there are new guidelines for refinancing deductions.