San Diego, CA (PRWEB) October 30, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Loan Love is able to provide loan borrowers with the essentials when shopping for any particular loan. The loan borrower advice website answers questions about these different loan types, as well as homeownership in general. A recent article published by Loan Love answers the often asked question of whether or not the down payment on a house is tax deductible and talks about some other mortgage expenses that bring tax benefits.
The article explains: “Is a down payment on a house tax deductible?” is a common question asked by first-time home buyers. While it would be wonderful if the appropriate answer was “Yes,” it’s not to be. Buying a home does offer multiple tax deductions, but down payment dollars are not among them. Depending on the specifications of mortgage programs, different down payment percentages apply. Unfortunately, regardless of the mortgage program you want, real estate down payments are not tax deductible.”
The article goes on to explain some of the different home down payment minimums when it comes to various loan types. It reminds borrowers that, while different loan types have different down payment requirements, in the end no loan type offers tax deductibility when it comes to down payments. The article does point out, however, that there are a number of other mortgage expenses that can be deducted from the home owner’s taxes. These include mortgage loan interest, real estate taxes, closing fees that increase the APR and mortgage insurance (which is required on all FHA and VA loans, as well as conventional loans with a loan-to-value (LTV) ratio greater than eighty percent).
Loan Love also gives some tips for those who are refinancing, as well as for first time home buyers. The rules for each of these types of loans are similar (there will usually be a charge that is equal to a down payment for a refinance if the home’s equity is less than the required percentage; this is also not tax deductible) however, the previously mentioned tax deductible mortgage expenses will still apply. The article’s advice for new home buyers is:
“Wherever you live, check with your state to see if they have some special mortgage programs just for first time homebuyers. Many lenders and state agencies offer more liberal mortgages for first timers. Don’t you feel special? You should, as lenders and state governments often try to offer help to first time homebuyers to navigate the confusing waters of home ownership.”
For more information on tax deductibility and home ownership, please visit LoanLove.com.