Financial Advice Mortgage Tax Credits And Tax Breaks
Now can be a great time to buy a house, especially if you've never owned
one before. The Government is offering significant tax credits to first
time home buyers and the interest rates are still very low. Before you
jump into home ownership, though, you will need to find a qualified
professional to give you proper financial advice for a mortgage.
Buying a house consists of much more than signing on the dotted line.
There are a myriad of loan types available and choosing the right one for
your situation is very important. Whatever type of mortgage you get will
have long term financial consequences for you, this is too important a
decision to rush in to uninformed.
Many homeowners are finding themselves in a tough situation now because
they got an adjustable rate mortgage. What that means is that the
interest rate they got for their loan was only fixed for a specific time
frame. After that point the interest rate would be adjusted according to
whatever the prevailing rate was. For many homeowners their mortgage
payments were doubled, or even tripled when their rate adjusted. Few
homeowners could afford the higher payment.
That is the reason that anyone who is considering an adjustable rate
mortgage should find a professional who can carefully spell out the
advantages and the disadvantages. It is imperative that you ask
questions, and continue to ask until you get an answer that you can
understand. One part of the problem is that a lot of people are afraid
of looking 'dumb'. It's for this reason that they won't press their
mortgage lender for a clearer answer. They will ask the question, get an
answer they don't really understand but feel too intimidated to have the
You should never allow your fear of looking dumb stop you from getting
all the information you need to make an informed decision. It's the
mortgage lenders job to understand all the in's and out's of mortgages,
it's not your job. It's also part of their job to not just understand it
all but to be able to explain it in terms anyone can understand. In this
case, what you don't know really can hurt you...a lot.
Another reason some people make poor decisions when it comes to getting a
mortgage loan is unrealistic expectations. They will sign up for an
adjustable rate mortgage where the payment is at the top of what they can
afford. They are gambling that the rates will go down by the time they
have to adjust their rate,or they are gambling that they will get a
promotion and be making more money.
This is not a good way to conduct your financial affairs. You should
always try to avoid going to the absolute top of your price limit and
mortgage payment. Leave yourself a little wiggle room. You never know
what the future holds. If you do get that great promotion just apply more
to your principle and pay your mortgage off more quickly.
One thing you need to keep in mind if you find yourself in a position to
pay down your mortgage is that many accountants will actually talk you
out of paying off your mortgage since you will lose a tax deduction. For
most people this advice is bad advice. You need to ask your accountant
how much of a tax deduction you actually get every year from your
mortgage interest. Than ask them how much you pay in interest every
year. Unless you will save more in the tax deduction than you would
spend on interest you will probably be better off paying off your
mortgage. Make sure you ask this question of your accountant.
Finding good financial advice for mortgages is extremely important.
Don't skimp, and don't be afraid to ask questions. It's your money, and
your future you have the right to be informed.