In a hurry to pay off your home loan?

Written by Syd Johnson

It is possible that after a few years you might get sick of making monthly payments on your home. Then it occurs to you, why not put all your extra cash into paying offrepparttar home loan. It certainly sounds like a great idea. After all, no one wants to be in debt forever. If you arerepparttar 150846 average homeowner maybe you should give that idea a second thought.

Unlike other types of debt like credit cards and car loans,repparttar 150847 interest on your home loan is tax deductible. So when you look at your mortgage payments, talk to your tax advisor to see what kind of adjustments will be made once you do you tax returns. If you have car loans, student loans and any other type of personal debt, try to pay those down first and then takerepparttar 150848 cash and put it towards your mortgage.

Take a look at your overall financial picture. If you have any other type of high interest debt, userepparttar 150849 extra cash to pay offrepparttar 150850 outstanding balances on those items before you start putting money towards your mortgage balance. Then you want to look at your investment portfolio. Find outrepparttar 150851 rate of return on your mortgage if you prepay, since itís basically paying yourself. Then compare it againstrepparttar 150852 return that you get from other investments and this will give a bit more to go on before you decided to funnel extra cash towardsrepparttar 150853 mortgage.

Are you ready for home ownership?

Written by Syd Johnson

Home ownership has many advantages over renting. You get a tax break for your mortgage interest payments, you can customize your property and you are building up home equity instead of throwing away your monthly payments. Another great benefit of home ownership isrepparttar sense of pride and commitment to your community. You are no longer traveling, looking or searching, but youíre putting down roots and building your life in a new way.

Tax breaks for mortgage payments A huge plus for homeowners is that they can deductrepparttar 150845 annual mortgage interest payments on their tax returns. This puts more cash back in your pocket that you can spend on yourself and on your family. You can maximize this return by making large monthly payments on a small down payment. The majority of your payments forrepparttar 150846 first couple of years will be interest payments. You can use any online mortgage calculator to checkrepparttar 150847 numbers and seerepparttar 150848 tax benefits that you can get with a mortgage instead of paying rent.

Control your space Another big advantage of home ownership isrepparttar 150849 ability to customize and personalize your living space. You can paint, tear down and rebuild according to your taste. There is no need to getrepparttar 150850 approval of your landlord or a rental company before you addrepparttar 150851 perfect splash of color your living room. Generally you will also have much more space in your home than in an apartment. So you control how much closet space you can afford up front, and you can make minor renovations later on to give yourself a better backyard, more closet space or a larger kitchen. Itís all up to you with no one leadingrepparttar 150852 way.

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