landlord

Put Your Rent Check to Work

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Put Your Rent Check to Work:-The only one who benefits from a rent check is the landlord. Renters never see that money again, while homeowners usually profit when they sell. In addition, renters can’t use any of their rent payment as a tax deduction, like homeowners can. If you or someone you know is renting, it’s time to put that rent check to better use! The mortgage-interest deduction is probably the best financial argument for buying rather than renting. Consider this example: If you can afford a mortgage payment of $1,000 (principal and interest only), you can buy a house …

Mortgage Points

To Pay or Not To Pay

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 To Pay or Not to Pay : Among the first things people ask when shopping for a mortgage loan is: What’s the interest rate? The answer is often a percentage rate with points—for example, 4.5% plus 2 points. Here’s what those points are all about. A loan discount point is equal to 1% of the loan amount. So, on a loan of $100,000, a borrower would pay $1,000 per point to the lender. (Fees, such as loan origination fees, are sometimes quoted in points, but here we’re talking about discount points, which are prepaid interest.) What’s the advantage to the borrower …