San Diego, CA (PRWEB) November 02, 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. The website provides both expert information and helpful online tools that can help loan borrowers find the perfect loan for their situations. The website also answers a number of questions about home loans and tax rules. A recently posted article discusses the tax deductibility of the mortgage down payment.
The article states: “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.”
So, as is clearly stated in the article, the down payment that home loan borrowers put towards their home purchase is simply not tax deductible. The good news is that there are many other tax benefit for home owners. While it is unfortunate that the down payment can not be deducted (certainly more borrowers would be happier to pay a larger amount up front if this was the case) there are a few other mortgage expenses that are deductible from the home owner’s annual taxes. These tax deductible mortgage expenses 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).
New home buyers who are not yet aware of all the tax laws concerning home ownership should do their best to learn all they can about the tax laws in their areas. The article also says: “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 helpful information regarding tax benefits for home owners, please visit LoanLove.com to read the full article.