too bad the contract couldnt be altered. no reason the loan servicer would really mind getting interest in advance. and if it could be deducted now, money is being left on the table by paying later.
so if you have the cash on hand and are definitely staying put, why not just amend the loan docs to agree that interest in say years 2-4 will become immediately payable in year 1 of the loan. and not payable in years 2 -4.
youd immediately get a large deduction on the payment. , the lender would get the cash. the gov. would sort of get screwed.
. theres probably therefore a rule,against this. but maybe theres some other creative workaround?
what if you refinanced to a new type of creative loan, one that only needs to exust for current transition period, say a 7 year loan, where you have a balloon payment of all interest immediately and all payments are all principal for next 7 years?
we could call it the emergency tax refi of 2017 loan…
