How does a mortgage work when dealing with tax returns?
Do we get back all the interest that we pay off or a certain percentage?
Please provide backup in your answer.
http://www.irs.gov/publications/p936/ar02.html
We paid off a 2nd mortgageforeclosure before it went through. We continued to pay on our first mortgage with no problem. The attempted forclosure was not on our credit report until we refinanced with a new mortgage company. Is this fair? It looks suspicious that it only appeared on our credit after we refinanced with a new company. We understand that business is business but it seems that they were fine with everything until we pulled our mortgage from them and went with another company.
Well, you were late, so the info is accurate.
It is probably just a coincidence… sometimes it takes time to get stuff posted onto a credit report.
I own a home in common with another person. We’re not married. We’re both named on the mortgage and we pay the mortgage out of a joint checking account, to which we both contribute and use for other various purposes. Can we split the mortgage interest deduction between us however we wish as long as we total up on our two returns to the total amount we jointly paid to the bank? Or must we use some kind of formula? How will the bank report this interest paid to the IRS?
You can split the total paid between your returns. You are supposed to split it by the proportion each of you actually paid.
The bank will report it all under the ss# of the primary person on the loan. If you are splitting it, you should include an explanation with your returns.
If you are looking for the best home mortgage rates or want to reduce your mortgage loan payments, check out this site
http://Best-Mortgage-Refinancing.com
Here you can get free quotes from all available companies in your area. its the best way to find an affordable payment with a reliable company.
Hope this help,
I have a rental unit on my property that is included with my mortgage. Can I claim that percentage of the mortgage as a deduction (based on square footage) or just the mortgage interest? (FYI: Yes I do have a tax professional but she is unavailable for a few days and I would just like to know for planning purposes). Thanks!!!
Only the interest is deductible. Principal paid is never a deduction.
However…..
You depreciate the property and get a tax deduction for the original cost (plus improvements) over time. The net effect is similar to deducting principal.
I know I could use a simple mortgage calculator, but I am curious to know how my mortgage payment is arrived at. Is it cumulative interest plus principal divided by years and months. Please could you supply a detailed example as I not too hot with maths. For example a £100000 mortgage at 5% over 25 years.
There is a formula for the monthly mortgage payment, M, in terms of the monthly interest rate, i, the loan amount, P, and the number of months in the repayment period, n. The formula is
M = i*P * (1+i)^n / ((1+i)^n – 1)
It will probably be less confusing with a concrete example. Take, for example, your suggestion of a 100,000 mortgage at 5% interest for 25 years. That gives a monthly interest rate (i) of .05/12 = 0041666667 and a repayment period (n) of 300 months.
The first thing to do is calculate 1.0041666667 raised to the 300th power. (You will find this MUCH easier using a calculator, but you could also do it with pen and paper.) I get
1.0041666667 ^ 300 = 3.48129
Plugging this result and the other numbers into the formula, you get
M = .0041666667 * 100000 * 3.48129 / 2.48129
M = 584.59
I know I could use a simple mortgage calculator, but I am curious to know how my mortgage payment is arrived at. Is it cumulative interest plus principal divided by years and months. Please could you supply a detailed example as I not too hot with maths. For example a £100000 mortgage at 5% over 25 years.
There is a formula for the monthly mortgage payment, M, in terms of the monthly interest rate, i, the loan amount, P, and the number of months in the repayment period, n. The formula is
M = i*P * (1+i)^n / ((1+i)^n – 1)
It will probably be less confusing with a concrete example. Take, for example, your suggestion of a 100,000 mortgage at 5% interest for 25 years. That gives a monthly interest rate (i) of .05/12 = 0041666667 and a repayment period (n) of 300 months.
The first thing to do is calculate 1.0041666667 raised to the 300th power. (You will find this MUCH easier using a calculator, but you could also do it with pen and paper.) I get
1.0041666667 ^ 300 = 3.48129
Plugging this result and the other numbers into the formula, you get
M = .0041666667 * 100000 * 3.48129 / 2.48129
M = 584.59
How can one mortgage a home without any credit history? We don’t own any credit cards and credit is harder now to obtain than before. What kind of a down payment would we need?
Thanks!
creditreport.imess.net – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.
We have been pre-approved by a mortgage company. The mortgage company has recommended a real estate agent. I am a little leary of going with this real estate agent, however, because, being a first time home buyer, I need a lot of guidance. I am afraid that, being tied to the mortgage broker, the real estate agent might not fight to get us the best mortgage deal (if it happens to be with a company other than the original mortgage broker’s).
How do you go about getting a good mortgage deal?
first of all, the real estate agent is not there to get you a deal on a mortgage – that is either your responsibility or the mortgage broker’s responsibility. The agent is there to put you in a house (show you houses, explain the offer/acceptance routine, be there at closing and walk you through the purchase process).
If you do not trust you mortgage broker to get you a fair deal, then you can start calling around to banks in your area and inquire about their rates. This means, however, getting a new pre-approval and starting from scratch on the mortgage. Being a first-time buyer, if you go this route, you are going to have to educate yourself regarding rates and points and buy-downs.
I have an interest only mortgage with my mortgage lender but I would now like to let my house out.
I have been advised that if I let my house out I am obliged to let my mortgage provider know.
I don’t know what the repercussions of this would be if I did or didn’t tell them. How would they find out if I just let it out anyway? What would they do if they ever found out? If I meet their mortgage repayments they shouldn’t have a problem, should they?
Can anyone enlighten me on these matters?
If your mortgage agreement states that you must notify the lender if you rent your house, then you must do so or you are violating the agreement. If you are in violation, the lender may demand repayment of the debt. If the agreement is silent on the matter, you are free to let your house with no repercussions. Naturally, you still have to satisfy your mortgage payments. Read your mortgage contract to find out what it says about the matter.
The taxes in our area when up drastically. My friend asked me to review his tax bill and I noticed he did not have a Homestead or Mortgage exemption. He has a 30 year mortgage on the property and it is his only & primary residence. He’s had the mortgage for five years. Is there a way for him to recoupe some of those taxes because he didn’t have those exemptions. Is his mortgage company responsible?
What about the back money that is owed to him because the county was over charging because he did not have those exemptions for 5 years
your friend is the one who would do that. if he thinks his tax is too high
he can call the assessors office and they should recalculate it or at least
check it out. there should be a place on the tax bill that says what to
do if you don’t agree with the tax.