Mortgage Advice for Tax Credits and Tax Breaks

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Mortgage Advice for Tax Credits and Tax Breaks

ric dalberri, Founder, RetirementUSA.com

September, 2010

Is there any ‘right’ time for anything? Well, now is the right time to purchase a house, particularly if it is your first home. The Government is offering (for first time homebuyers) great tax credits. In addition to this, interest rates are low. Contact a professional mortgage person or speak with your bank.

This can be a scary thing particularly if you never owned a home. There are a multitude of loans available to you. You need to find one that fits your budget and needs. That’s why a mortgage specialist will help you. This is a long term commitment.

One of the problems with homeowners is a purchased adjustable rate mortgages known as ‘ARMS’. In other words, this interest rate was only good for a certain time frame, usually not very long in comparison to the length of the entire mortgage. After that time frame, the interest rate is adjusted to rate the going rate is. For many of these people, the mortgage payments more than doubled.So important here is that you must seek a professional to help guide you through this process. There are pro’s and con’s.

Be sure you understand every aspect of a mortgage you are going to get. Ask to have anything explained you don’t understand. Remember, no question is a stupid question. They’re just questions and need an answer that is understandable to you. An educated consumer is the best type of buyer. The mortgage specialist will be able to go over as many times as necessary all the information you ask to ensure you understand. Remember, what you don’t know can really hurt you.

You can not predict the future. You need to have a little room in your budget for who knows what may happen. Live by your means.

Be careful of bad advice from professionals. For example: An accountant may tell you not to pay off your mortgage. Bad advice. Why? Ask your accountant how much of a tax deduction you really get every year from paying a mortgage interest. Than figure how much interest you pay each year. Unless you will save more on the tax deduction from your interest than you would spend on interest, you will see it is better to pay off your mortgage.

Seek out a qualified mortgage specialist. It’s your money, house, and your future.How will you handle advice on tax credits and tax breaks for your mortgage?