Ryan asked:


I am a graduate student nearing graduation and have a heafty student loan around 160k. In addition, my credit score is poor because of a few missed payments. I would like to talk with someone who can give me unbiased advice on how to tackle my student loans as well as provide insight on possibly buying a house, consolidating my debt and raising my credit score.

Tamara

Carrie Reeder asked:




Not only are your mortgage interest payments tax deductible, but so are your refinancing costs. Points can be deducted over the life of your loan. However, there are some restrictions with this program.

Deducting Refinanced Points

When you originally take out a mortgage, you can deduct the points paid the year you take out the home loan. With refinancing, you have to deduct the points over the course of the loan.

So take the point amount paid and divide by the number of payments for the entire loan. A 30 year loan would have 360 payments. For each payment you make that year, you can deduct that amount off your taxes.

If you cash out part of your equity, you can also deduct the points in full that year in certain cases. For example, home improvements meet the IRS’s requirements.

When you pay off your refinanced mortgage early, you can deduct the remaining point amount from that year’s taxes.

Restrictions to Be Aware Of When Deducting Refinance Costs

As with any IRS program, there are restrictions with deducting refinancing costs. For example, depending on your income level, there are restrictions on how much you can deduct.

Closing costs, such as attorney fees, notary fees, and PMI, are also excluded. When the seller pays the points, they cannot be deducted either.

Paying Points on Refinance Isn’t Always Best

Points are a typical feature of today’s mortgages, but don’t plan on paying several points just for the tax write off.

Points are usually paid to further reduce interest rates on a mortgage. If you are planning to keep the loan for several years, this can save you thousands and may be worth paying the upfront cost. However, if you plan to move in a few years or refinance again, you won’t see a gain from paying the points.

The best thing to do is find the lowest costing loan first. Ask for APR quotes from several lenders to find the optimal rates and fees. That step alone can save you thousands. Next, decide if you can come out ahead by paying additional points. Remember that the tax deduction will only save you pennies on the dollar.

Jeanne

no picture asked:


I bought a house six months ago. The price was 465,000. Anyways my real estate agent hooked me up with two mortgages. My first mortgage is fixed for 5 years and is interest only, i got it for 6.62% interest rate, my second mortgage is a balloon loan and i got that one at 9.15% interest rate. So i pay 2,031.39 for my first mortgage and 749.80 for my second mortgage. So do you think i got a good deal or my real estate agent screwed me over. I don’t know anything about real estate so any help or advise would be appreciated. Thank you.

Karen

bryan l asked:


I very upset with my mortgage company. 1 year ago they gave me a courtsey call telling me i have 45k in equity in my home. They threw me an offer to cut my bills down ect. I went into talk to them at a local office and they spelled every thing ourt My 1st loan is 140k on a adjustable plan. They were telling me to roll in my car loans, credit cards and student loan to cut monthy payments total as 70k. They valued my property at 220,000 did not send our a appraser, they also told me that it would help my credit score substantually doing this so i could refinance my 1st. Now my 1st adjusted from 5.7% to 9.22% with payments increase HUGE. I called Country Wide to dicuss refinancing. They looked it up and it did show my Credit Score did go up to 680. and yes we are ready to work with you. They sent a appraser our 300 dollars extra out of my pocket and they apprased the property at 185k, leaving me backwards 35k. they then told me they could not do anything.
to break it our
before this refinance Now after this
140k 1st 140k 1st
35k 2nd mortgage 80k in HELOC
20k in student loan Now told value
25k car loan is 185k
Property value was
told to be at
220,000

Marilyn