Fixed Rate Mortgage Refinance Loan PLACER CA
Affordable payment can help you shop through a variety of lenders, banks, mortgage brokers and providing you custom rates without any of these banks, lenders, brokers. You do not have to give out your personal information to any of these brokers or lenders. Get qualified for the lowest mortgage and right program and excellent support from Affordable payment.
In this Article we shall focus on answering some common queries of Placer CA mortgage borrowers:
Investment Property Mortgage Rates for Placer CA mortgage borrower:
The Investment property rates are higher than primary and even higher than second homes. That is because in the event of any financial contingency its likely that the borrower would default n his rental property than default on his primary or the second home.
Lenders are comfortable should the borrower decide to convert his rental property into primary because in that case the risk of the lender goes down.
Ideally the rates on the rental are .75% higher than second home but its not a black and white policy as different lenders have different rules but they are always higher than second home.
You cannot have an investment property unless you have 20% equity in the home and the if you have 30% or higher that is the time when you are looking at rates similar to second home or primary.
Tax Treatment for Investment Property Mortgage:
A rental income would appear on schedule E of your IRS tax return. The gross rent on one side and deductions in the form of interest, Property tax, insurance or home owner association fee, depreciation etc. If the net is positive. You are taxed on the amount and if it’s negative. You are not taxed as it’s your loss.
Borrowers who make a lot out of rental income do not get the benefit of being taxed less. So if you have a rental loss that rental loss would accrue each year. That is you can carry forward such losses on the rental property and if you intend to sell the property. You can use the loss to set off against any capital gains. For more you must speak to your Tax advisor.
Things you need to watch out for financing a second home:
Some borrowers feel that they can rent out their second homes. The interest and the property tax just the way you pay on your primary are deducted on schedule A of IRS returns and the same rules apply for second home as if they were your primary for tax purpose.
So if you rent the property. You are not only earning rental income but you are also claiming interest and other deductions like primary that go against the law. So it’s strictly prohibited that you use second home as rental. If you still however wish to use second home as rental. Call your tax advisor and he will be able to help you.
Call Placer CA mortgage expert below to get you the lowest mortgage rate on your refinance.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower.
30 yr fixed refi 3.807% APR 3.775%Rate | At 0 pts
20 yr fixed refi 3.500%APR 3.500% Rate | At 0 pts
15 yr fixed refi 3.044%APR 3.000% Rate | At 0 pts
10 yr fixed refi 2.940%APR 2.875% Rate | At 0 pts
Artical by Roger Shanker
No comments:
Post a Comment