How much of your home equity loan interest is tax deductible?

Written by Syd Johnson


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However, if you start getting to a point whererepparttar amount of your first mortgage and your home equity loan are more thanrepparttar 112130 current value of your property, you won’t be able to deduct all of your interest payments. This means that if you get a home equity loan using one of those 125 percent LTV programs, you can lose big time.

You will now owe more than your home is worth; have no ability to get another home equity loan or home equity line of credit until you pay downrepparttar 112131 excess amount and start building up new equity, andrepparttar 112132 interest payment onrepparttar 112133 excess amount is not eligible for any tax deductions.

If you are in this position, try to pay downrepparttar 112134 debt as quickly as possible. You don’t want to lose out on any tax deductions, but you also don’t want to loserepparttar 112135 financial cushion against emergencies and high interest debt that can get form a home equity loan or home equity line of credit.

This article may be freely distributed as long as there's an active link to http://www.rapidlingo.com Syd Johnson Editor


So which is better fixed rate or adjustable rate mortgage?

Written by Syd Johnson


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So which one really is better? Depends on interest rate and personality If you’re going to stay in your home for 30 years or more thenrepparttar fixed rate loan will usually give you a better deal. As your income increases, you won’t have to worry about fluctuating payments so you can put any extra cash towards savings accounts and retirement funds. Otherwise, it depends on how you feel about your monthly payments.

If you think that you can get a better deal by playing againstrepparttar 112129 market rate inrepparttar 112130 hope that you’ll end up with much lower payments at some point, then you should get an adjustable rate loan.

Talk to a financial advisor or a loan officer about your concerns before decide to getrepparttar 112131 most up to date options on both types of loans.

This article may be freely distributed as long as there's an active link to http://www.rapidlingo.com Syd Johnson Editor


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