CHAPTER 8 Shopping for a Home Loan or a Home Loan
Ah, the joy of ownership! Purchasing a home puts you into a realm full of things you have not dealt with before, mainly if you used to rent. Owning a house brings a whole new experience. For instance, consider taxes and mortgages, two behind-the-scenes players that wield a surprising amount of influence over your
financial health. When purchasing a home, it's crucial to understand what can be deducted and what can't. One powerful golden nugget many homebuyers overlook is the effect of mortgage interest on their federal income tax payments. Yes, you heard that right! That pesky interest you pay monthly can be deducted and treated like a powerful financial sidekick. Mortgage interest is deductible and a potent financial planning tool. Understanding and calculating the amount of mortgage interest deduction and including that in your annual financial planning can save a significant amount on your taxes, empowering you to make informed financial decisions and take control of your financial future. Then, check the Internal Revenue Service (IRS) Form 1098 from the lender at the end of the year. This form shows the amount of mortgage interest that you've paid. No one ever said taxes could be fun, but putting that deduction to work for you might net some substantial savings. Let's discuss what you can't deduct because, believe it or not, 69
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