Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase. 

This morning I sat down with Danielle Engels from Dakotaland FCU. Listen as she explains the MCC Tax Credit. Shane also spoke with Brent Adney last September about the MCC Tax Credit. You can listen to that podcast here https://anchor.fm/shane-andersen/episodes/Mortgage-Credit-Certificates---A-Talk-With-Brent-Adney-e5ecl2

 You can reach Danielle at 605.697.5922 or daniellee@dakotalandfcu.com  Her office is located at 2423 6th St., Brookings SD 57006 or on the web at www.DakotalandFCU.com

 MCC Tax Credit

- All right good morning everybody Shane here from the Brookings Home Team powered by Century 21 815. And it is Monday morning so that means Monday morning mortgage tip. And we are here with Danielle over at Dakotaland Federal Credit Union. So as you guys jump on here, let us know. Give us a heart, give us a thumbs up. If you have any questions at any time feel free to let us know in the comments here. If we can answer 'em here we will. If not we'll try to answer them on our next episode. And as usual, all of Danielle's information will be on the top, on the bottom, or on the sides, wherever your device allows you to see that. And we were just kinda talking offline what to talk about here today. I think the MCC Tax credit is probably a good one to talk about. You know I did a podcast with Brant over from South Dakota Housing about, well, it was during our state convention in Deadwood is when I did that. Just trying to remember when we did that. So it's been about six, seven months since we did it and it's always a good thing to kind of keep fresh on your mind and Dani here will just kinda talk briefly a little bit about that. There's a whole lotta pieces that go into this so we're just gonna touch on the high level side of things

- Yeah

- and kinda go from there so what do you have for them today on the hub.

- So the MCC tax credit is offered through South Dakota Housing, depending obviously you would be able to choose whether or not you want that as an option. It does change or reflect your interest rate whether you choose to do the MCC tax credit or not. There is an upfront fee that could maybe vary per lender. Ours is $500 so you pay that just one time in your closing cost. But then the benefit of having that is that when you turn around and do your taxes it's not dollar for dollar, they basically have a calculation that you figure and it allows you to deduct a portion of your mortgage interest from your standard deductions. Normally you can only do that on itemized deductions so this program lets you take a percentage of that and reduce it on your standard deductions when you're doing your income tax returns. It is a benefit for the life of the loan, so as long as you own the home you get to continue to do it. You actually receive a certificate once you have closed on your home. We always tell people to make sure you don't lose that, keep it in a safe place 'cause they do charge you to reissue you a new one. And then each year when you do your tax returns you would get that benefit. So yeah it's a great option, I always encourage people to take a look at that, you know, you can always consult with your tax preparer if you feel like it would be something beneficial for you. But its a great option that South Dakota Housing has.

- It is and, as I mentioned, I did sit down with Brant over at South Dakota Housing about six, seven months ago. We do have a full it's about a 13 minute podcast about this and even though we've talked about it before it's always a great idea just to keep on the top of your mind. It is a tax credit not a tax reduction. I think Brant kind of emphasizes that, so there is a difference

- That's a good point, yup.

- between that there, so. And that certificate, they do everything they can to make sure you do not lose that certificate. 'Cause yeah like she said, if you lose it it does cost you some money for that too but I think in the long run, if you're gonna be in a home for a while, that's a good program to think about and look into

- Great.

- quite intensively.

- Yeah, and we always say and I don't know if it still holds true but typically your first year probably makes up for what you pay in the fee. But then each year after that, that would just be bonus in your pocket so.

- Yeah, exactly. You bet. So, there you have it. That is today's Monday morning mortgage tip here with Dani from Dakotaland. Again, all of her information will be on the top, on the bottom, on the sides. However your device allows you to see that. If you have any questions for her, for anybody else, please reach out to us or to her and let us know. And if you want more information on that MCC tax credit just go to my podcast link there. Just jump on my website or just let me know I can send you the link as well to give you more information on that, so. Thank Dani!

- Yeah!

- Appreciate it. So we'll be back next Monday, Monday morning mortgage tip. Until then you guys have a great week and we'll talk to you later. See ya

- Bye.

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