The Value of an MCC Tax Mortgage


Canopy Standalone MCC – Payment Advantage Calculator

Shows how a 15% uncapped MCC lowers your effective interest rate and after-tax monthly cost. APR is computed in the background; closing costs aren’t displayed.

Quick Scenarios (test cases)
Base Loan Amount
Payment Balance
Monthly P&I
Monthly Taxes (1.7%/yr)
Monthly Insurance (0.45%/yr)
Monthly PMI
Total Payment (Month 1)
MCC Credit (Month 1)
Effective Out-of-Pocket (Month 1)
Effective Interest Rate (approx)

Effective Rate & APR

Base Rate
Effective Interest Rate (approx)
–
Computed as rate × (1 − MCC%).
APR (nominal)
APR (effective EAR)

MCC Impact

Month-1 MCC Credit
Month-1 Out-of-Pocket after MCC
Year-1 Total MCC Credit (est.)
10-Year Total MCC Credit (est.)
Credit equals MCC% of interest paid (modeled for the first 10 years), subject to personal tax liability.

Why Canopy Standalone MCC

  • 15% uncapped credit on mortgage interest paid
  • Lowers effective interest rate and after-tax monthly cost
  • Pairs with Conventional or FHA first mortgages
  • Credit modeled for the first 10 years

Modeling Notes

  • Effective rate = rate × (1 − MCC%) (illustrative; not APR)
  • APR via IRR with standard lender fees + per-diem; escrows excluded
  • Taxes 1.7%/yr; insurance 0.45%/yr (estimates)
  • Conventional PMI drops at ≤80% LTV; FHA MIP for life
For illustration only; not a commitment to lend or offer of credit. MCC benefit depends on your personal tax liability and eligibility. Consult a qualified tax professional. Terms subject to change.

CHECK YOUR ELIGIBILITY >>>>


Interactive calculators are self-help tools. All examples are hypothetical and for illustrative purposes only.

E. Lee Smith

Branch Manager

RMLO

NMLS: 436498

512-948-6550

Esmith@canopymortgage.com

E. Lee Smith

Branch Manager

RMLO

NMLS: 436498

512-948-6550

Branch: Canopy Mortgage - TLC Group - 13809 Research Blvd, Ste 500, Austin, TX 78750 | Office #512-598-9093 | NMLSConsumerAccess.org #: 1359687 | Equal Housing Lender -All loans subject to credit and property approval.


Consumers wishing to file a complaint against a banker or a residential mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov. State Licenses page, Privacy Policy, and Terms of Use