Have you wondered what exactly is up with
complaints against mortgage lenders bad credit home equity
An Overrated Tax Strategy: The Home Mortgage Interest Deduction
The mortgage interest deduction just might be the most overrated tax saving strategy there is, and yet it is considered by many to be a primary reason for home ownership.
Look, I present financial seminars for thousands of people every year. During breaks people will invariably come up to me and ask me questions about their personal financial situation. I tell them to do five basic things
- Get out of debt and stay out of debt.
- Save 3-6 months of expenses for emergencies and emergencies only.
- Use the envelope budgeting system. It's the best budgeting system ever developed.
- Open a Roth IRA so that you can have tax-free investments and tax-free income for the rest of your life.
- Pay off your mortgage so that you can own a home free and clear.
The one that always meets with the most resistance is the one about paying off a mortgage. People will often say, "I don't want to pay off my mortgage because I need the tax deduction."
That kind of logic gives me a headache. Here's the deal: If you pay $1,000 a month in interest on your mortgage, and if you're in the 28% tax bracket, you will still pay $720 a month in interest ($1,000 minus 28%). So it's only a good deal compared to not getting any tax deduction at all or -- in many cases -- paying rent. A mortgage interest deduction does not "save" you money over not paying any interest at all.
In my entire career I've never heard anyone who owned a home free and clear say, "Gosh, I sure miss having that mortgage payment." So once you've found a home that you want to live in for the rest of your life, work toward paying off your mortgage early. You'll be glad you did.
(c) Larry Holmes
Larry Holmes invites you to visit http://www.smart-money-report.com/ Your common sense guide for financial and investment success.
More Useful Resource and Updates on complaints against mortgage lenders bad credit home equity
- Many pieces go flying from mortgage implosion (Dallas Morning News)
WASHINGTON ? Your taxpayer credit card is on the counter, all set to get the economy moving again. Caveat emptor ? let the buyer beware. The value of the mortgage-backed securities the federal government is set to buy is hard to decipher when the good, the bad and the scary are bundled together.
- Credit market to price $500bn in bad deals (Financial Times)
The credit derivatives markets will on Monday set the price tag for settling up to $500bn of contracts related to Fannie Mae and Freddie Mac, the US mortgage lenders whose seizure by the US government had the unexpected knock-on effect of triggering defaults on derivatives deals.
- Credit markets still tight as stocks plunge (AP via Yahoo! News)
The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the Treasury will go about buying $700 billion of U.S. banks' mortgage assets.
- Credit markets still tight as stocks plunge (The Journal News)
NEW YORK - The jammed credit markets barely budged yesterday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the Treasury will go about buying $700 billion of U.S. banks' mortgage assets.
- Mortgage Loan Applicants Are Welcomed at Family First Federal Credit Union (Business Wire via Yahoo! Finance)
OREM, Utah----Turmoil in Congress and on Wall Street has had minimal impact on Family First Federal Credit Union and its ability and willingness to make loans to its members.
- Credit stays jammed (Denver Post)
The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the U.S. Treasury will go about buying $700 billion of banks' mortgage assets.
- Credit markets still tight as stocks plunge and governments move to prop up banks (The Canadian Press via Yahoo! Canada News)
NEW YORK - The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the U.S. Treasury will go about buying US$700 billion of U.S. banks' mortgage assets.
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