The Value of an MCC Tax Mortgage

This tool illustrates the potential cash-flow impact of oura Mortgage Credit Certificate (MCC) Standalone mortgage. The “effective rate” shown may look almost ~1% lower than your note rate, but your actual interest rate and APR do not change—it simply converts estimated federal tax credits into an interest paid-equivalent for comparison. This calculator does not include tax benefit from the deduction of mortgage interest, taxes or PMI. Results are estimates and depend on MCC eligibility, income, filing status, tax liability, program limits, and tax law; you may not realize the full benefit. This is educational only and not tax, legal, or financial advice, nor a commitment to lend or a rate quote. Please consult a licensed loan officer and a qualified tax professional for advice specific to you.

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%).
Estimated Lifetime MCC Credit (30 yrs)
–
= MCC% × total interest paid over the loan term.
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.)
Lifetime MCC Credit (est.)
Credit equals MCC% of interest paid, subject to personal tax liability.
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

[email protected]

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