Loans

Homeowners usually feel like they need to pay off their mortgage as soon as possible. However, the interest paid on your mortgage can usually be deducted from your federal taxes.¹ Therefore, it makes more sense to pay off other forms of debt first, such as high-interest credit cards or car loans (which you can easily do using cash from a refinance loan). Be sure you are maximizing your tax savings with the loan you choose.

Some people feel that a minimum 10 to 20 percent of the purchase price is required for a down payment. However, there are many loan programs for homebuyers who can only afford a down payment of five percent or less. If you're living paycheck to paycheck right now, don't panic. There may be a loan option out there for you - just call us to find out how we can help you buy your dream home.

This is not necessarily true. There's a new option called piggyback financing that can help you avoid paying for mortgage insurance. A piggyback loan is essentially a second loan designed to minimize your down payment. Your first mortgage loan covers 80 percent of the purchase price, and, depending on how much you can afford, the second loan can cover 10 or 15 percent of the remaining cost. Taking this route allows you to buy a more expensive house and decreases your down payment, and it increases your potential tax deduction.¹ The interest on a piggyback loan is tax deductible, while the premiums for mortgage insurance are not.