Can you write off interest you only accrue?
I had a mortgage broker contact me about refinancing with a 1% only loan. Instead of paying interest only, you pay only 1% of the balance. His big selling point is more money in your pocket while keeping the interest tax write off. I asked him how I could write off the interest when I haven't paid any. He says you get a statement at the end of the year with all the interest you have accrued. Even though you haven't paid any, you can still write this off. Is this true?
Just to let you know, I have NOOOO intention of refinancing, I just want to know if he is telling the truth.