A reverse mortgage loan allows the homeowners to borrow money against their home while they still retain the title to the property. There are no monthly payments required on a reverse mortgage loan. However, once the homeowner moves out of the home or passes away, the reverse mortgage becomes due and payable. With no monthly […]
In 1913, the 16th amendment allowed personal income tax and one of the allowable deductions was mortgage interest paid on your principal residence. A follow up in 2017, Tax Cut and Jobs Act reduced the maximum amount of acquisition debt to $750,000 from $1,000,000. Acquisition debt is the amount of debt used to buy, build […]
Need some money? Want lower interest rates? Then a home equity line of credit or HELOC may be the answer for you. It is a mortgage loan that homeowners can use as-needed. Any lender like a bank will review and approve it for a specific amount based on the amount of equity you have available […]
Don’t lose your ability to deduct mortgage interest from your taxes by not properly handling the mortgage loan paperwork when taking money from a relative to buy a home. Especially if you might become their heir. Home mortgage interest can only be deducted if the loan you accept is a secured debt and you sign […]
Most American believe that they will have a car payment and a house payment for the rest of their lives. But if you get a plan and a little discipline you don’t have to be in that majority. You plan should be to make additional principal contributions to your fixed-rate mortgage which will shorten the […]
You may have been approached by a family member or friend to co-sign a loan for them. Assurances are made that they will make payments. You feel obliged because you don’t want to disappoint them. It won’t cost you anything…or will it? When we change our thinking about the loan it might make more sense. […]
Are you one of the people who don’t really care about your credit rating until you need it for a loan? If so, you are taking a chance on being denied future loans and/or delaying any decisions on financing. A common issue is not reviewing and correcting items recorded on your credit report. There are […]
In the past twenty-five years, not many buyers have been assuming mortgages. In the late 1980’s, the Federal Housing Administration and the Veterans Administration began to require that buyers qualify for the mortgage assumptions.
Even if you have a property lost due to foreclosure or short sale and you might feel relief from being out from under your mortgage obligation, the cancelled amount must be included in your income tax reporting depending on circumstances.
Everyone knows that if you pre-pay your mortgage you can save a lot of money in interest and you will also build equity faster. Even though mortgage rates are low right now, they are still higher than what you can earn in a savings account. If you have a little extra money, then pre-paying your […]
