CHAPTER 8 Shopping for a Home Loan or a Home Loan
If you've read my bio, you know I was deeply involved in the mortgage industry for over 20 years. I was the founder and owner of one of the largest mortgage brokerage operations in the '80s and '90s and started in the mortgage business in 1976. To say I have a deep understanding of the mortgage industry would be an understatement. The decision to buy a home puts you into a realm full of things you probably have not dealt with before, especially if you used to rent your home. Owning a home brings a whole new experience starting with how you plan to pay for or finance your new home by way of a mortgage loan. You will also need to consider and understand the tax benefits you may suddenly be given along with homeownership so always check with your tax advisor on any questions you may have as to what is and is not tax deductible and how it will affect your finances moving forward. For example, consider taxes and mortgages. When you’re looking to purchase a home, it’s important to understand what can be deducted and what can’t. A powerful piece of information many home buyers overlook is the effect of mortgage interest on their federal income tax payments. Mortgage interest is deductible and a powerful financial planning tool. Calculate the amount of mortgage interest deduction and include that in your annual financial planning. Then, make a point of checking 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. You may also be able to deduct a portion of the real estate taxes 100
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