The first thing I do when I meet with a new client is go through their credit report line by line. All of the information it contains is important. Your credit score is the most important piece of information in determining whether or not you qualify for the best mortgage financing available.
If you plan on buying or refinancing your home in the next 12 months, contact me today to learn how you can save thousands on mortgage interest! I'll share the credit scoring secrets I have learned by being an industry insider!
Call Peter at: 414.453.7620
E-Mail Peter at: peter@mortgageMKE.com
Tuesday, February 13, 2007
Mortgage Insurance Is Now Tax Deductible
As of January 1, 2007, private mortgage insurance (PMI) is deductible on your Federal tax return so long as your income is less than $100k. For people who are already paying PMI this is a great deal! For new clients it warrants a discussion.
Over the last few years there has been a clear advantage to avoiding PMI by limiting the amount of a first mortgage to 80% of the value of a home. We have accomplished this by placing two loans--a first for 80% and a second for anywhere between 5% and 20% of the value of the home, depending on how much cash a buyer has available to bring to closing. The advantage of doing so is twofold: lower monthly payment, and a higher tax deduction--mortgage interest is tax deductible, and PMI was not.
Now that PMI is tax deductible, it will be a better option than two loans for some borrowers. Because the monthly cost of PMI will vary based on credit score, amount of down payment, and type of property, for many borrowers a two loan package will still be the better option. However, is some cases, PMI will be the more cost effective option month after month--not to mention saving up to a few hundred dollars in closing costs by only closing one loan instead of two.
If you are in the market for a new home or a refinance, contact me to learn more about which option is best for you. If you are working with someone else and they haven't at least discussed this with you they are not a True Mortgage Professional. My job is to give you the information you need to make an educated decision. This includes discussing all of your options and empowering you to make a decision.
Call me today at: 414.453.7620
Over the last few years there has been a clear advantage to avoiding PMI by limiting the amount of a first mortgage to 80% of the value of a home. We have accomplished this by placing two loans--a first for 80% and a second for anywhere between 5% and 20% of the value of the home, depending on how much cash a buyer has available to bring to closing. The advantage of doing so is twofold: lower monthly payment, and a higher tax deduction--mortgage interest is tax deductible, and PMI was not.
Now that PMI is tax deductible, it will be a better option than two loans for some borrowers. Because the monthly cost of PMI will vary based on credit score, amount of down payment, and type of property, for many borrowers a two loan package will still be the better option. However, is some cases, PMI will be the more cost effective option month after month--not to mention saving up to a few hundred dollars in closing costs by only closing one loan instead of two.
If you are in the market for a new home or a refinance, contact me to learn more about which option is best for you. If you are working with someone else and they haven't at least discussed this with you they are not a True Mortgage Professional. My job is to give you the information you need to make an educated decision. This includes discussing all of your options and empowering you to make a decision.
Call me today at: 414.453.7620
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