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Home ownership comes with a lot of responsibility, so it seems fair that there are also many benefits – especially when it comes time to pay your taxes. If you already own a home, you’re probably familiar with these. But, for the rest of us looking to buy now or in the future, here are some basics on 6 tax benefits you can expect once you become a homeowner.
The mortgage interest deduction
This is the major deduction most homeowners are eager to cash in on. The way mortgages work is that you pay most of the interest on the loan within the first several years. The good thing is that interest payments qualify as an itemized deduction (listed on Schedule A) on the federal tax return, potentially reducing your tax liability for those that can gain versus filing the standard deduction every year. [ continue reading… ]
I’ve always heard it’s best to pay off your credit card in full each month, but this certainly not the universally accepted opinion. Some people actually think carrying a balance on their card is the best way to build credit. What about you though – is it good or bad for your credit score if you carry a credit card balance?
The argument for paying off your credit card in full each month is straightforward:
It demonstrates your ability to handle credit responsibly by only borrowing what your budget can afford. This can boost your credit score.
You’ll save money on interest (although the amount of interest you pay doesn’t necessarily impact your credit score).
But there is also an argument for carrying a balance:
If you make the minimum payment on time, carrying a balance doesn’t count against you.
The indication is that most of us aren’t very good at it.
According to a survey reported by CNBC, close to 40% of baby boomers have spent more than $500 without letting their significant others know. On top of that, the survey estimates that there might be as many as 12 million Americans hiding accounts and credit cards from their partners. That’s right. 12 million people!
It’s Fairly Easy to Hide Money from a Significant Other
You might think that it would be hard to hide money from a significant other, but the reality is that hiding an account is actually pretty easy to do.
After all, your credit is separate from your partner’s even if you are married, and it’s not that hard for a partner to open a credit card without you knowing. It’s even possible for him or her to open a bank account in his or her own name without you ever knowing about it. [ continue reading… ]
Everyone makes home improvements for different reasons, but most of the time they’re either a necessity (maybe a roof repair), something for personal enjoyment, or intended to increase a home’s market value. In fact, about 53% of adults in the U.S. have completed a home improvement project within the last year. Whether you’re getting ready to move or just sprucing things up a bit, it’s wise to be mindful of how the improvements you’re making will affect your home’s value when it comes time to sell or refinance your mortgage.
Based on what real estate experts say, the three top home improvement categories that deliver the biggest bang for your home renovating buck fall into three categories: practical appeal, curb appeal, and modern appeal. Let’s take a look at each: [ continue reading… ]
We hear all the time that it’s important to pay attention to our credit and work to improve our scores.
Knowing exactly where you stand can be difficult, however, when you consider that you could have hundreds of credit scores. Where do you start?
How Does That Happen?
Well, a big reason is that there isn’t a standard way to calculate a credit score. Any credit scoring model uses information from your credit report. So, right there, you have as many credit scores as you do reports. There’s a different score for each credit reporting agency. [ continue reading… ]
If you’re a recent college graduate, newly married, or just haven’t had the income to save up for a 20% down payment on your first home, you might have been told to look into an FHA loan. If you’re also new to the world of real estate and mortgages, like me, you might be wondering what an FHA loan is and what makes it such an attractive option for many first-time home buyers.
What are FHA-Insured Loans?
FHA stands for the Federal Housing Administration, a government agency that’s been around since 1934. Although the term “FHA loan” is commonly used, the FHA doesn’t lend money — it’s just the world’s largest mortgage insurer. The FHA insures high-risk home loans provided by certain lenders.
To help you determine if an FHA loan is the best option for you, let’s look at some of the basic advantages and disadvantages it comes with. [ continue reading… ]
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