CHAPTER 8 Shopping for a Home Loan or a Home Loan
"The odds of going to the store for a loaf of bread and coming out with only a loaf of bread are three billion to one." - Erma Bombeck
The decision to buy a home is a whole new experience.
Consider taxes and mortgages. When you are purchasing a home, it is important to understand what can be deducted and what can not. Many home buyers often overlook the effect of mortgage interest on their federal income tax payments. Mortgage interest is a powerful financial planning tool. Calculate the amount of mortgage interest deduction and include that in your annual financial planning. Some of the nondeductible items include home repairs, general closing charges, as well as property hazard insurance premiums. Once you own a house, you are a property owner, with the attendant obligation to pay property taxes. The usual method of paying property taxes is to include the amount of annual taxes within the mortgage payment. The mortgage servicer will pay the taxes as they are due. When buying a house, your lender will calculate the total amount of real estate taxes, as well as the number of days in a property tax year that you were the owner of the said property and add 50
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