A mortgage is a smart investment!

Cola Tax & Solutions
This article highlights the benefits of a mortgage. Now is a great time to buy a home, the housing market is at a low which means the value will be higher in time. Owning a home is not only a great investment, but is the best income tax deduction for individuals. Mortgage interest paid is deducted right off the AGI. The IRS cuts even more slack to those without a 20% down payment, by allowing private mortgage insurance premiums to be a tax deduction. The benefits of owning a home do not stop with income tax breaks. Monthly payments toward a mortgage slowing gain equity, so in a way a small percentage of the mortgage payment is refunded back at the time the house sells. On top of the equity, the market value may increase as well. The average during a stable market is 4% per year. Some markets today are stable and still growing, while others are declining. Between the two, selling your home could make you a big profit and if done carefully, can avoid capital gains tax all together. To avoid capital gains tax the owner must have lived in the property, as a primary residence, for more than 2 years in the past 5 years. Without a down payment of 20% most people become discouraged. This should not be the case, a credit score greater than 620 allows for PMI, Private Mortgage Insurance, again tax deductible. Another option is a FHA, Federal Housing Authority, loan which is allowing many people right now to obtain a mortgage, and to buy there first piece of real estate. FHA loans are becoming ever more popular. The best thing to do is pick up a phone and call a mortgage lender and see what type of loans they have available. The next step in becoming a homeowner, after choosing a loan type, is to contact a realtor. Also check BankRate.com regularly while looking for a home. A low mortgage rate could save you hundreds a year and thousands through out the life of the loan. For more information visit Cola Tax & Solutions