IMPACT ON TAXATION

Mortgage Interest As A Tax Deduction

The major advantage in owning real property comes from the availability to deduct the interest of a home mortgage and a home equity loan. Many states enable you to take that deduction. Buying a home is a sound tax strategy. It’s a tax "shelter" you can virtually live in. Under the current tax code, in order to qualify for an income tax deduction for interest paid on a mortgage, you have to meet certain requirements. Mortgage interest on first and second homes is generally deductible as long as these loans total less than US $1.1 million, making homeownership one of the best ways to trim your tax bill. This is called "acquisition indebtedness" incurred in acquiring, constructing or substantially improving a qualified residence secured by the property.

IMPACT ON REAL ESTATE

Choosing The Right Mortgage

By Edgar Henry

With the numerous mortgage offers that bombard the internet, newspapers and magazines today, most people are totally confused as to which direction to pursue when it comes to choosing the right mortgage. With all the gimmicks and strategies that advertisers use on a regular basis, the true mortgage mess unfolds all around us; yet there’s never been a better time to make sure you make the right mortgage decision than now. Of course not! No single loan is best for all seasons or circumstances, but the following loan types work better than most when matched to your individual situation and lifestyle. The average person tends not to understand mortgages, so they leave the decision-making to the mortgage broker or the financial institution. The mortgage broker is working for a commission or a fee, so he/she may not be necessarily working in your favor.