San Diego, CA (PRWEB) November 03, 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 discuses tax deductible mortgage expenses and specifically answers the question of whether or not mortgage down payments can be deducted from the home owner’s taxes.
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 talks more about some of the different down payment minimums for different loans. It explains that while these rates fluctuate from loan to loan, in the end no type of loan offers tax deductibility for home down payments. However, there are a number of other tax benefits that come from owning a home. Some mortgage expenses that definitely are tax deductible 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).
So, while it is unfortunate that house down payments can not be deducted (since many loan borrowers would most likely gladly pay more on their down payment if this were in fact the case) there are many other tax deductible expenses that make home ownership beneficial to tax paying citizens. For more information on what counts as a tax deductible expense, please visit Loan Love at http://loanlove.com to view the full article on home down payments and tax deductions.