tax benefits on a home loan

Guest 0.10 Dollars($)

Can I have some information on the tax benefits that one might get from a home loan?

blue · Posted: Wed Feb 01, 2006 9:49 am Post subject:

Hi John,

The interest on your home is tax deductible.

Regards,
Blue

Samantha · Posted: Wed Feb 01, 2006 9:57 am Post subject:

Hi John,

As a home loan borrower you can get substantial tax deductions towards your mortgage payments. Along with the mortgage interest, real estate taxes are deductible from your federal and income taxes in many states.

You should consult a tax advisor for more details.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

I had a quick scenario I was wanting to get some feedback on if I could.

I have a house worth $350,000 but the current mortgage is at $191,000. I wanted to refi my home for $280,000. The cash out would be $89,000 so I don’t have to pay capital gain tax on that money, because I am a married tax payer and it is under $500,000.

Now could I in theory go out can purchase 3 $250,000 homes with 10% down each that would be $75,000 and get all of these homes under a “Power Option Loan” or “Pick a Pay” where it is the 4 payment options, or at lease interest only.

Now if this is possible to do what are the tax benefits if I get all interest only payments are all four of my 4 of mortgages tax deductible 100%?

Any advice about the above scenario will be greatly appreciated because I am not too sure where to look for the information to read on. Any tax benefits that you may deem useful here please help…. Thank you….

blue · Posted: Tue Feb 14, 2006 6:01 pm Post subject:

Hi TJ,

I am not too sure whether you can get 4 loans under interest only mortgages, but I think if you're paying 100 percent interest, your payments are 100 percent tax deductible.

I will take up your query with the tax advisors to find out some more details. Please get back here.

Regards,
Blue

Guest 0.10 Dollars($)

Thanks for the reply Blue, I am very green in this area so forgive. But is there any limit to how many home one can have with interest only?

Samantha · Posted: Wed Feb 15, 2006 1:30 pm Post subject:

Hi TJ,

Welcome to MortgageFit Forums.

I don't think there is any guideline on the number of homes that can be purchased with interest only loan.

The main thing that will count is how many you can qualify for.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

Thanks Samantha,
If you were to have have 3 homes already and have them leased out with Contracts and then i attempt to buy a new home or homes will my income have to be able to support those mortgages on paper or will it be off set by the fact that the 1st 3 homes are rented out and not of my month to month obligation?

blue · Posted: Wed Feb 15, 2006 3:18 pm Post subject:

Hi Tj,

I have answered you here. Kindly check and get back here if you have more queries.

Regards,
Blue

ckalvesmaki · Posted: Thu Feb 16, 2006 10:30 am Post subject:

TJ

Good thinking on the option arms.......at 90% you will need good credit scores to make that happen but it will give you flexabilty when the homes are vacant.

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