Interest. Blechhh. Especially mortgage interest. You borrow some money from some lender then not only do they want their money back but a little extra, if you please.

How much do you pay in interest? It depends upon how much money you borrow and for how long. Typically the longer you borrow money the lower your payments will be. But the catch is that you'll also be paying more in interest charges while taking longer to pay down the principal. Comparing a 30-year fixed rate mortgage payment at 6% to a 15-year fixed rate of 5.75% on a $250K note you'll find the payments are about $1,499 and $2,076 respectively. Even though you'll notice that a 15-year fixed rate is most always about a fourth percent lower than a 30-year rate, the monthly payments are higher with a 15-year loan. And you also pay a lot more interest when you stretch a loan over a longer period of time.

Over the course of both loans, the 30-year note has you paying $289,595 in interest alone...more than what you originally borrowed! At the same time, the 15-year loan collects $123,684 in interest...less than half of a 30-year loan. The problem with a 15-year loan is that it's more expensive every month, nearly a third higher. Even though financial experts says it's best to pay less interest, not more, the 15-year loan may simply be out of reach for many borrowers. But you don't have to choose between just a 30 year or 15-year note...there are other choices.

If you itemize your deductions, you can deduct home mortgage interest on Schedule A of Form 1040. Qualified mortgage interest includes interest on a loan secured by your main home or second home. The loan can be a mortgage or a home equity loan.

In order for you to deduct the interest, though, you must be legally liable for the loan. So you cannot deduct the interest on someone else's mortgage, even if you've paid it. Only the person legally responsible for the mortgage can deduct it.

Other details: The mortgage used to buy the house can't exceed $1 million, and home equity debt can't exceed $100,000. There are a few more details that go into these calculations though, so you should consult the Publication 936 from the IRS for the rest of the rules.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

It's no secret that parts of our horribly complicated tax code have been invented (in part) to encourage or discourage certain behaviors. One of the "encouraged" behaviors is home ownership.

Along with home ownership comes the potential to itemize your deductions on your personal income tax return, and hopefully save yourself some tax dollars. Included in your itemized deductions are real estate taxes and home mortgage interest. Those can give taxpayers literally hundreds or thousands of dollars of tax savings.

So when you're considering whether or not to buy a home, you might want to factor in the tax impact. Although my home costs me more each month in terms of my mortgage payment and property tax escrow than my last apartment, I'm building equity, living in a larger place, and saving money each month when I factor in those tax deductions that I get at the end of the year.

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Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Experts will tell you not to run up the balance on your credit cards because you will pay dearly when it comes time to calculate the interest. But the fact is that many consumers do have credit card debt that is carried over from month to month.

Here's a way to reduce your taxes and probably save some interest in the process. Use a home equity loan to pay off your credit cards. (But be sure to cut up the cards and not begin accumulating a balance again!)

There are two advantages to carrying your debt as a home equity loan: First, the interest on a mortgage or home equity loan is generally deductible on your taxes if you itemize, while the interest on a credit card is not deductible. So you'll get a small reduction in your taxes for the interest on that loan. Second, home equity loans generally have lower interest rates than credit cards, so you can save yourself some money.

There are limits to the amount of mortgage interest that is deductible, so check the rules before you do this. The deduction is also only available for your first or second home, so you won't be able to do this on other properties you might own. This tip also won't help you if you are affected by the Alternative Minimum Tax.

As with any tax tip, check the rules before you act.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.