San Diego, CA (PRWEB) October 29, 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 home ownership in general. A recent article published by Loan Love answers to the question “Is a down payment on a house deductible?” as well as other homeowner’s tax questions.
The article says: “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 explains that down payment minimums vary depending on the loan program that is chosen; conforming, non-conforming, government backed, etc. But regardless of what type of home loan and down payment scheme the homeowner opts for, the fact remains that this amount will not be deductible. Fortunately there are other things that homeowners can deduct from their taxes. These include:
- Mortgage loan interest.
- Real estate taxes.
- Closing fees that increase the APR (Annual Percentage Rate) of the mortgage loan.
- Mortgage insurance, required on all FHA and VA loans and on conforming or conventional mortgages higher than 80 percent loan-to-value (LTV).
These deductions are usually very beneficial and many home loan borrowers even refinance their homes with cash out refis towards the end of their loan term in order to continue receiving deductions. However, it is unfortunate that the down payment itself is not included in these deductions. Most individuals would probably be much more willing to pay a larger percentage of the loan amount up front if it meant that they could deduct it from their taxes. While this may or may not change in the future, for the time being homeowners will have to be satisfied with the many other tax benefits of owning a home.
For more information on home down payments and tax deductibility, please visit LoanLove.com to read the full article.