How to have your mortgage payments at a lower rate when shopping for a loan for a property?

What is the tax benefit of home mortgage? Why is there variation in HOA fees? I am looking to have my monthly payments at lowest possible in that range of loan.

By | 2013-08-26T19:23:50+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|2 Comments

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  1. Fungus Amungus August 26, 2013 at 8:23 PM - Reply

    The oft-quoted tax benefit of owning a home is the fact that the interest you pay on your mortgage is tax-deductible. For example, if you pay $1000 per month in rent, then buy a home and pay $1000 monthly towards your mortgage, the interest portion of that payment, as opposed to the principal, is tax deductible. This means that, if the interest portion of your payment is $200 monthly, for example, you can deduct $2400 from your income yearly, thus reducing the amount of income you are actually paying tax on. This might not sound like much, but over a few years it can add up, and would be especially beneficial if that final $2400 in deductions lowered your income bracket a notch ;).

    HOA (Homeowner’s Association) fees vary quite simply based on the neighborhood that the home you are looking at is in. Different HOAs in different neighborhoods offer various benefits depending on the level of oversight regarding neighborhood “zoning” standards, community property to maintain/landscape, etc.

    There are many options for keeping payments as low as possible. If your credit history and income are sufficient, many lenders offer programs designed to do just that, such as interest only loans or adjustable rate mortgages (ARMs). Be warned however; most of these lower payment options will eventually increase, depending on the terms of your loan. Talk to a reputable local lender or broker to see what options are available to you. My advice to you, seeing that you want to keep your payments as low as possible, is not to try to buy more house than you can afford. Try to stick with a traditional 30-year fixed rate loan unless there are solid reasons you believe an alternative loan is preferable. Good luck!

  2. Rachel R August 26, 2013 at 7:48 PM - Reply

    Tax benefits…interests is tax deductible and property taxes etc. HOA, home owners association fees? If so they vary from condo to condo or in some cases subdivisions based on what your getting for it such as lawn and snow care. Swimming pool, gym. I’ve even seen some that cover heat and water.

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