Posts tagged Mortgage
How will I be taxed on the money from the sale of my house?
How will I be taxed on the money from the sale of my house?

There is a good chance you will pay 0% in taxes on the sale of your home. The tax code has a provision for the sale of your primary residence where you can shield profit from taxation, called the primary residence exclusion. If you have been living in the house for at least the past two years, you can qualify to avoid taxation on the profit from your home, up to a total of $250,000 if you are single or $500,000 if you are married.

  • You may not be able to avoid all taxes

  • You only pay taxes on profit

  • You may owe no taxes

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Tax PlanningJoshua Escalante Troesh, CFPTax Planning, Mortgage, Buying A Home, Capital Gains Taxes, Property Tax
Coronavirus: What mortgage help is available?
Coronavirus: What mortgage help is available?

Resource are available to help including ways to replace your income and relief programs to help make your mortgage easier to manage. Start by identifying who owns your mortgage to determine the programs available to you.

ALSO COVERED:

  • Freddie Mac relief programs

  • Fannie Mae relief programs

  • How to request help from a bank or credit union

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Life Planning, Debt ManagementJoshua Escalante Troesh, CFPYoung Families, Starting Out, Financial Foundation, Stock Market Crash, Bear Market, Stock Market Correction, 30-year mortgage, 15-year mortgage, Mortgage, Debt Management, Corona Virus, Covid 19, Debt Relief
Is it worth paying points to buy down the mortgage interest rate?
Is it worth paying points to buy down the mortgage interest rate?

If you keep the mortgage for 30 years it is generally worth it, but almost no one does this for either their home or investment property. If you sell the property in 3 months it doesn’t make sense to pay $10k in points to get a $170 monthly savings. The question is: How long do you need to have the mortgage to make paying that fee (the points) worth it - considering the time-value of money?

Article Also Covers:

  • How to calcluate the net present value of the bank’s offers

  • How banks calculate their offers

  • Estimating how long will you keep the mortgage

  • The rate of return on alternative uses for the funds

  • Multi-decade tax planning and mortgage points

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Debt Management, Tax Planning, Life PlanningJoshua Escalante Troesh, CFPReal Estate Investing, 30-year mortgage, Tax Deduction, Tax Planning, Income Tax, Mortgage, 15-year mortgage