interest

Information About Mortgage Tax Benefits

  • One of the most important benefits of buying a home and having a mortgage is the mortgage interest expense income tax deduction.  For most borrowers, the mortgage tax deduction provides a significant, positive financial impact and is an important factor in determining how much home they can afford.  The interest expense tax benefit helps to offset property taxes, homeowners insurance and other monthly housing expenses you pay when you own a home.

 

Are you curious as to how Mortgage Amortization Works?

Amortization is the technical term for how your mortgage is paid off over time and determines the amount of your monthly mortgage payment. Except for interest-only mortgages, all mortgages amortize, which means the vast majority of mortgages amortize. For amortizing mortgages, the mortgage payment is split between principal and interest. The principal component of your mortgage payment goes to paying down the mortgage balance. The interest component of your mortgage payment represents the cost of borrowing money from the lender and does not reduce your mortgage balance.

Are you curious as to how Mortgage Amortization Works? Here is all you need to know

Amortization is the technical term for how your mortgage is paid off over time and determines the amount of your monthly mortgage payment.  Except for interest-only mortgages, all mortgages amortize, which means the vast majority of mortgages amortize. For amortizing mortgages, the mortgage payment is split between principal and interest.  The principal component of your mortgage payment goes to paying down the mortgage balance.  The interest component of your mortgage payment represents the cost of borrowing money from the lender and does not reduce your mortgage balance.

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