vaspider: dlilflametomane: vaspider: dlilflametomane: biglawbear:omruc:especially when your rent is
vaspider: dlilflametomane: vaspider: dlilflametomane: biglawbear:omruc:especially when your rent is higher than your landlord’s mortgage on the rental property And when your landlord can deduct your rent because it pays their mortgage MORTGAGES ARE TAX DEDUCTIBLE?! The interest on mortgage loans, as well as PMI (Private Mortgage Insurance), which is placed on loans where the buyer places down less than 20% of the property value, are generally deductible. Some property tax is generally also deductible. (None of this is tax advice, obviously. I used to process mortgages for a living - basically after people applied, I’d work with them to get the loan approved and set up for closing, so I know a lot about how mortgages go together.)Generally speaking, FHA mortgages, which are intended for (and generally restricted to) first-time homebuyers, require a 3.5% down payment. For the average home price in Philadelphia, that’s about $8K. The average house price in Portland? $19,200. San Francisco? $52,080. When we bought our old place in suburban Philly in 2008, we needed $5.2k. The average 2BR apartment there was $1.6K, so it wasn’t incredibly out of reach compared to an apartment where I’d need first, last, and security deposit. It fucking sucks that house prices shut people out of home ownership. The interest on a mortgage is front-loaded (as all loans generally are) which means the first few years, the deduction is pretty fucking good. Wow, thank you for all the extra info, much appreciated.Feels like I just keep discovering ways I wouldn’t be charged as much or would be able to get more money back if I just… had more money already.[personal] Currently facing a debt equal to my monthly rent because I wasn’t able to pay parking tickets on time (lack of funds), and the late fees kept piling up. Now that debt is on my credit card, which is also shitty, but at least my car won’t get impounded so I can still get to work. [/personal]Honestly, the most incredible part is that your down payment was less than 5x rent! Yeah, apartments were pretty expensive comparatively bc we were in a really attractive commuting area and near to colleges, so rent was out of sorts, and we bought a house that needed work. (Way, way more than was disclosed. We lost money on that house over 11 years. A lot of it.)That said… I had meant to put more information on the previous post but I got distracted. There ARE places like NACA. I don’t know exactly what they’re doing now but @dadhoc worked for them for a bit before they came to do NK full time with me. NACA’s mortgage process is a little longer and more involved - you have to take homebuyer classes and submit budgets and stuff - but they can work with credit and downpayment issues in a way that traditional banks can’t or won’t. I don’t know what’s up with them now, but it’s worth looking into. Emet resigned in early 2018. -- source link