Mark Galante's Blog
Buying a home will likely be the most important and expensive purchase you ever make. And, although that might seem like a scary commitment, it’s one well worth it. It’s an investment in your future. There are many benefits or perks that come with owning a home.
Equity: Owning your own home typically comes with gaining equity. Every month that you pay your mortgage, you are increasing your equity. And as long as the market continue upwards, your home and the equity you’ve gained will hold significant value.
Privacy: Privacy is a large perk of owning your own home. This is more so possible when owning a single-family home in a rural location, but many duplexes and condos also provide opportunities for privacy. And in many cases, since you own the home,you can put up your own privacy such as planting arborvitae trees along your properties edge.
Tax Advantages: One of the biggest perks when owning a home is the ability to deduct mortgage interest on your federal income taxes. This will be a significant amount for the first few years of your mortgage, making this a huge benefit. Although, the amount of interest paid decreases over the years, there will still be deductible interest paid in the last few years of your mortgage.
Space: Houses will almost always provide you with more space than an apartment—and it will certainly have more space than your childhood bedroom. The space will be all yours, which means not having to share with other renters or your parents. Of course, home location and the market come into play here, but for the most part you will get more square footage for your money—as landlords charge high rents to cover things like water, electricity, snow removal, or still charge high rent prices and do not cover any of those other expenses.
No restrictions: There are many restrictions that come with renting or living in a condominium. These restrictions could include no pets, parking restrictions, outdoor updating restrictions and many other different types of constraints. When you own your own home, you make the rules. If you want to put up a fence, you can. And if you want to put an addition on your house, you can do that too. Just be sure to check with your town before beginning any construction projects.
Establishment: Buying a home provides you the ability to set down roots, to be established. Although, not a benefit to some, it is to many. Buying a home provides you with ownership and a sense of freedom. You now have the opportunity to invest in something that is yours. You can make updates to the bathrooms, add a pool in the backyard, and paint the front door any color you want—because it’s yours.
A home is often the foundation of one’s life and who can deny its appeal with these perks discussed above? So, what are you waiting for? Start your search today!
A common problem among homeowners is the reality that life is unpredictable. There are so many things and so many issues that may come along the way. Owning a house can be both an asset and a liability if it does not get done right.
Can I Sell My Property Even If It Is On Mortgage?
Yes, you may sell your property even if it is on the mortgage.
You may opt to sell it because you got your best luck and you are moving before the end of the original mortgage contract.
You may also decide to sell if you own a property, but you are going through some financial difficulty, you may either refinance your home and make use of the equity or sell your house and downgrade to a smaller one or lease an apartment. We have all been there, and the truth of the matter is that every person who has come face to face with financial difficulty should have a guide on how they can go about selling the property.
How To Sell Your Property On Mortgage
The following are the steps to take:
1. Meet with a professional real estate listing agent. Tell them your situation and they will help you find out your current mortgage payoff. Once this information is available, you will figure out the following items:
- Your current borrowing situation;
- How much your asking price needs to be for you to be able to pay off the remaining loan balance; and...
- The probability of making some money out of the sale.
2. Once you have all the information, the real estate agent can go ahead and make a sale. Afterward, you get to discuss how you are going to get some value off the purchase.
What If The Property Value Is Less Than What I Owe?
If you owe more than what you are going to make from the sale, you can talk to a bank to make a short sale. You can read more about that in this article.
You can follow the above steps and sell your property even if it is on the mortgage. It will take maturity to handle a financial difficulty that forces your hand to sell your house, even if it is not yours yet. It also takes a lot of luck to be able to move to a more prominent place long before you paid off your last mortgage. What matters at this point is to contact a real estate agent and help you get through with the sale without any glitches.
Buying a home requires a lump sum of money for the first-time buyer; this is why most first-time home buyers ask to get a tax credit. To help a first-time homebuyer achieve the dream of owning a home, some options are available to ease the financial strain. There are grants by the federal and state government, and there is also a tax credit. Other individuals who are not first-time homeowners also qualify for these grants if they can meet specific demands. A tax credit entirely differs from a tax deduction; it's not interchangeable like most people think.
The tax credit is a reduction in your tax liability—dollar for dollar. It means whatever amount you owe for tax would be deducted from your tax credit with the exact amount. For a new-home owner, it’s a huge relief considering how much must have gone into a down payment for the home.
Tax reduction reduces your taxable income by your tax reduction percentage, leaving you to pay the difference. Tax reduction still saves money, but it’s a far cry from the tax credit.
For you to be considered a first-time homebuyer, you must meet specific criteria the United States Department of Housing and Urban sets, it includes:
- You are a single parent who has never owned a home aside when married to a former spouse.
- A homemaker that is displaced and has only owned a home with a spouse.
- You have never owned a place you call your permanent residence.
- An individual who owned a home that violated the codes of the state or model building and required an amount higher than the cost to build a new home to bring the former into compliance.
If you satisfy all these conditions, you can go ahead and request for a first-time homeowner tax benefit. These credits get granted through the following methods.
Mortgage Interest Credits
The idea behind mortgage interest credit is to make provisions for low earned income families the opportunity to purchase their own homes. It’s an ideal solution as it reduces tax payable. To take part in this opportunity, you need to present a state-issued Mortgage Credit Certificate.
Penalty-Free Ira Payouts
As a first-time homeowner who owns an IRA saving account, you are allowed to withdraw up to ten thousand dollars as payment for your first home. It’s a retirement account you should only have access to it without being charged at about age sixty. But for the benefit of first-timer homeowners, the penalty fee on this deduction is waived.
Credits On Home Improvements Made
Home renovations such as solar panel installation made on your property as a first-time homeowner can qualify as Residential Renewable Energy Tax Credit.
Aside from tax credit, there are other options available to first-time home buyers who might find it difficult to get a home on their own. Make sure you check your local county office for the most recent information.