The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
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In the ever-evolving landscape of real estate financing, an often-overlooked option presents a unique opportunity for both buyers and sellers: the ass...
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A balloon mortgage can appear as an attractive, low-cost entry into homeownership, but it carries a unique set of financial risks that borrowers must ...
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The journey from mortgage application to closing table is rarely a straight line. For many borrowers, a crucial and often misunderstood part of this p...
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The journey to homeownership culminates in two critical final steps: the final walkthrough and the review of the Closing Disclosure. While they occur ...
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The journey to homeownership is a monumental financial achievement, yet the initial mortgage payment and down payment are often just the beginning of ...
Read MoreA seller’s market occurs when demand for homes exceeds supply. This leads to multiple offers, rising home prices, and homes selling quickly. A buyer’s market occurs when there are more homes for sale than there are buyers. This gives buyers more negotiating power, often resulting in price reductions and slower sales.
Your down payment is a percentage of the home’s purchase price that you pay upfront to secure the loan. Closing costs are separate fees for the services and processes required to complete the mortgage transaction. They are not applied toward your home’s equity in the same way.
This is a standard and very common practice in the mortgage industry.
Lenders often sell the “servicing rights” to other companies to free up capital, allowing them to originate more loans.
The terms of your original mortgage loan note typically give the lender the right to do this.
For a primary residence, special assessments are generally not tax-deductible. However, if the assessment is for a capital improvement that adds value to the property (e.g., replacing the entire roof), it may be added to your cost basis, which can reduce capital gains tax when you sell. For rental properties, special assessments may be deductible as a business expense. Always consult a tax professional.
The best source for official information is the Internal Revenue Service (IRS). Key resources include:
IRS Publication 936, Home Mortgage Interest Deduction: This publication provides comprehensive rules and examples.
IRS Form 1098: The form your lender sends you detailing your deductible interest.
Schedule A (Form 1040), Itemized Deductions: The form you use to claim the deduction.
