Tax Tips For Home Buyers
Taxes play a big role in buying a house, but you may be playing the right game with wrong house. Let me explain. You’re a renter. You rent every month for a “unit” you don’t own. At the end of the year, you cannot claim your rent on your taxes as an expense unless there is a business involved and we won’t get into that right now. That is a monthly bill you cannot do anything with but pay. Now, if you buy a house, you have the option to deduct mortgage interest and property taxes off your tax return and save some money every year. The interest on some lines of credit qualifies, also. Investors that own rental property can also deduct a percent of the purchase price every year. This gives you a chance to save money on a monthly payment most people have to pay anyway. At least this way you get some of that money back at the end of the year on your taxes. Now let’s go to the next level. Your home plays a big role in your taxes every year. Although you do get a pretty healthy deduction on your house interest and property tax, it may not be your best interest to use that as an excuse to keep a mortgage on your home. I have heard many people tell...
view the listingMortgage 101
Mortgage 101 is for those of you who are new to the world of money. This should explain some details about a mortgage. When you are in the market for homes for sale, the first thing most people do is get pre-qualified from a bank. IMPORTANT: If you don’t like the terms from one bank, you can shop around. Most banks have different terms and rates in order to compete with others. Going to a mortgage broker can be helpful, just ask if they are a captive agent. Captive agents have contracts with certain mortgage companies and are not out for your interests. You want a non-biased, non-captive agent who can give you many options. When you find a company you want to deal with and get approved, you should walk out with a “Truth in Lending” statement once you have locked in an interest rate. This statement shows two important items – the annual percentage rate and the total payback. The APR can be locked in now before you leave or you can wait to lock it in if the rate is dropping like it has been doing for the last couple years. The lender can tell you what the rate is doing. If you’re getting a mortgage anyway, half a point can make a big difference. The total payback is not a typo, you will pay...
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