What is an Assignment of Mortgage?Written by Syd Johnson
Most mortgages are sold at least once during life of loan. A mortgage company or your local bank will sell loan to free up their cash and then lend out more money other home buyers. When mortgage is sold of it is called an assignment. The party that bought mortgage is now responsible for dealing with you customer to make sure that all payments are made for next 15, 20 or 30 years.An assignment of a mortgage is a bank to bank, or entity to entity transaction. Your bank does not need your permission and does not have to notify you that your loan has been sold. Instead, it is up to new party that has bought your loan to send out a notification. This notification will let you know to whom you will be making your monthly payments, contact numbers and addresses for customer service issues and any other important information that you will need. In general, nothing else about your mortgage will change. The monthly payment amount and interest rate should stay same. However, if you do want to make some changes then you can try to negotiate with this new company. They can accommodate you, at their discretion.
| | How much of your home equity loan interest is tax deductible?Written by Syd Johnson
To find out how much of your home equity loan is tax deductible, you must look amount of money that you borrowed and purpose for borrowing it. As with all other financial products, before you start counting savings from using a home equity loan to finance any type of debt, you must take a complete look at your financial picture, IRS schedules and deductions rules, and consult your tax advisor to make sure that you are getting your legal deductions and not paying back more than is needed to IRS. Currently, you can deduct interest on first $100,000 that you borrow on a home equity loan. This money can be used to finance cars, education expenses, credit card debt, home improvements, home repairs and more. All of these items if done separately would carry their own varied interest rate. In addition, interest on some of items would not be tax deductible. If you wrap them up all under $100,000 home equity loan, you can usually get a low interest rate and get to deduct interest payments on your annual tax returns.
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