Assume your home is assessed at $240,000. You have a $230,000 loan for 15 years at 7.5 percent. Your property tax rate is 1.1 percent of the assessed value. In year one, you would pay $17,250 in mortgage interest and $2,640 in property tax (1.1 percent on $240,000 assessed value). Assuming you are in a 28 percent tax bracket, by what amount would you have lowered your federal income tax?

		$3,319.40.
		$5,569.20.
		$4,296.60.
		$4,382.00.