Virginia Mortgage

Posted by  on Aug 05, 2010
When you are looking for Virginia mortgage, you should keep in mind a few things about the real estate business. It is good to know that real estate taxes are tax-deductible. It is also a good idea to know a little bit about Virginia interest rates before making any decisions. It is also good to know that your interest statement should list the amount of real estate taxes you paid if your taxes and homeowners' insurance were placed in an escrow account when you closed on your mortgage.

If your real estate taxes aren't included on the statement, review your canceled checks to figure out the total amount of real estate taxes paid. The points you pay on a loan for a home purchase are tax-deductible for the year you made the purchase. You can deduct the points you paid as well as those a seller paid on your behalf if you meet the following criteria:
The loan is secured by your primary residence; The loan was used to buy, improve or build the home; Paying points is a common practice in the seller's geographic area; The points are calculated as a percentage of the loan principal; The points are clearly outlined on the buyer's settlement statement; and the amount of cash you put into the purchase of your home is at least equal to the amount you were charged for the points you paid on the loan. Keep in mind that sometimes, the seller will contribute money to the buyer to help cover the buyer's loan closing costs.

The average concession is three percent of the sales price. Also, seller concessions can go towards buying down the interest rate, closing costs, discount points, and pre-paid items such as per diem interest, escrows and tax pro-rations.
If you refinanced in the last year, you may be able to deduct any points you paid to buy down the Virginia mortgage rate.

These points must be deducted proportionately over the life of the loan. For example, if you took out a thirty-year mortgage, you would deduct 1/30th of the points each tax year. Several homeowners have overlooked an important tax opportunity. If you have refinanced more than once, you can deduct unclaimed points from an earlier refinance. For instance, lets just say that you refinanced in 2003 and paid points. You then deducted 1/30th of those points in 2003 and 2004. Keep in mind that rates continued to drop, so you decided to refinance again in 2005, paying off the 2003 loan. The remaining points you have not yet deducted can now be deducted in 2005. You could also use this deduction if you sold the house in 2005, rather than refinancing.

Interest paid on a home equity loan or line of credit may be tax-deductible up to $100,000. However, the deduction may be limited if the combined amount of your second and first mortgages total more than the property's actual value.
If your home is worth $150,000 and you have a first mortgage for $125,000 and a home equity loan of $40,000. The two mortgages combined equal $165,000. That means you can only deduct the interest on your home equity loan up to the amount of $25,000. Home-ownership comes with a lot of advantages, especially when it comes to tax time. Make sure you're not missing out on important home-related tax deductions.


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