Why is home mortgage loan considered a tax benefit ?
I am planning to buy a home and wanted to know why everyone thinks that home mortgage loan is tax beneficial. Example: - If we are paying around $15, 000 a year in interest property taxes and in tax refund 15% tax bracket we get back around $2K - 3K and we are happy. Its like paying government $100 and getting back $15 and we are happy with that. Correct me if I am wrong- The government wants you to spend money so that it can stimulate the economy. If the economy gets going again, it will cost less for the government in the long run
- You're partially wrong. If you pay $15, 000 a year in interest and property taxes AND you are in the 15% tax bracket, you get to reduce that $15k from your income. This means you will pay $2, 250 less in federal income taxes. So in other words, you are paying $15k to save $2k. It's not good business sense, but it's better than not saving anything. but that's not the entire story. it gets worse. You only get to deduct the $15k IF AND ONLY IF you itemize your deductions instead of taking the standard deduction. If you are married, your standard deduction is $11, 400 $5, 700 if you are single. Since you are paying $15k in interest / taxes, you get to deduct an extra $3, 600 than you otherwise would have been en led to anyway. Therefore, your net tax benefit really is not $2, 250. It's only $540 15% of $3, 600. But wait. it gets worse. You are only paying $15k in interest / property taxes the FIRST YEAR of the mortgage. Keep in mind that part of your mortgage payment goes to principle. While your payment each year will be the same, the amount going towards principle and the amount going towards interest will change. Eventually, that $15k payment each year will only be a few thousand worth of interest. at which point there is ZERO tax benefit
- the interest you pay on your mortgage is a tax deduction
- You are right at this point that mortgage loan is tax beneficial as mortgage loans provide the facility to pay the loan with tax cut payments
- You are wrong
Knowledge Base
No Doc, Bad Credit, First time Home Buyer Purchase Mortgage?
i want to buy a single family home in louisiana for 165, 000. i have never filed bankruptcy. but i have a poor credit score, student loans and am self - employed. that's the bad stuff. the good stuff is that i have cash in the bank for a down (home equity mortgage)
Can a debt collector physically show up to your home to collect on a home equity mortgage?
i was a collector of unsecured debt for years i was the guy that hounds you on the phone :. i know the ftc regulates debt collection through the federal debt collectors practices act. i remember my boss telling me about the good ol' days when he would go to (second home mortgage)
How can I get out of my home mortgage loan?
me and my fiance bought a home, now his family is residing with us temporarily. it has been a year, the loan is in both our names. how can i get out of it? i has been only 3 months since we bought the home. he would have to refinance (home mortgage loan)
Knowledge Base: Home Mortgage
What caused the home mortgage rates to sky rocket, causing people being unable to pay their monthly mortgages?
the recession was caused by people being unable to pay back their home mortgages because the mortgage rates were too high? banks were not getting their money back from home owners, causing a credit crunch, thus they were unable to lend money to big businesses. big businesses then had to (new home mortgage)
Home Equity Line of credit Or Second Mortgage Loan which is better ?
i am confuse in home equity loans with second mortgages. second mortgages and home equity loans can be used for the purpose of cashing out equity in home;. this confusion, it seems to run deeper. the purpose of a home is to have a house in which to live. without (home mortgage rates)
Is it possible to get a new home mortgage after having a house foreclosed on you?
i think you have to wait a few years and clean up your fico score. most definitely!if it has been seven years since - a person can "start over". you must have a plan in place before you see a mortgage spe t. yes, you will be able to get (home equity mortgage)
Is there a way to group my car loan and student loan into a new home mortgage?
i have student loans of about $7, 500 and about $13, 000 left on my car loan. i am looking to purchase a house and wondering if there is any way to add my car loan and student loans on to the mortgage?. not on the mortgage. a mortgage has (new home mortgage)
What would happen to your home mortgage loan in this case?
say if me and a co - buyer buy a home together both first - time home buyers, and get a conventional loan from a bank. if later, one of us wants to take our name down the le, would that be allowed? would the bank re - acess the (home mortgage loan)
Knowledge Base: home mortgage loan
what's the easiest bank to get a home mortgage loan from in florida? I am a first time buyer?
i am a first time buyer and am trying to get qualified for a home loan. i am scared that if i go to the wrong banks they will just keep runing my credit and lower my score so i want to go to one bank and run it only (home mortgage loan)
What would happen to your home mortgage loan in this case?
say if me and a co - buyer buy a home together both first - time home buyers, and get a conventional loan from a bank. if later, one of us wants to take our name down the le, would that be allowed? would the bank re - acess the (home mortgage loan)
what company is the best home mortgage loan lender?
i am interested in refinancing my home and have a current loan with chase home mortgage. which home loan lender it most popular or best to use?. mortgage loan is a term used for the loans secured by a property. mortgage loans refer to a loan secured by residential property, (home mortgage loan)
Can a conventional home mortgage loan be refinanced using FHA?
i know that if a person already has an fha loan, they may refinance using the fha streamline process. if a person currently has a conventional mortgage loan, can they refinance using fha? if posible, can you please provide me the resource where i can read this information. only if (home mortgage loan)
Can we get a home mortgage loan with poor credit?
my soon to be husband and i are renting a home in our area and paying $1100. 00 a month in rent. this is quite a bit for the area that we live in we are wanting to buy a home and feel that we have sufficient income around $90, (home mortgage loan)
