changing tax laws - are you up-to-date?

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changing tax laws - are you up-to-date?

Taxes are a complicated subject and making the slightest mistake could end up costing you quite a bit in penalties. Do you spend time each year keeping up with the changing tax laws? These laws change more often than you might think. Before you consider filing your taxes on your own, stop and think about what it will cost you to have them professionally prepared versus paying the penalties for making mistakes. My site includes information about the ever-changing tax laws as I know them to be now. The information here is only meant to guide you to making the best possible decisions for your personal situation.

Dispelling Mortgage Myths That May Mislead You

It is a sad fact of life that most people will never have enough cash available to outright purchase a home. While mortgage loans are available to those that are in this position, these loans can be highly complex legal contracts, and if you do not fully understand the terms, you may find yourself facing problems down the road. Unfortunately, there are many people that are under the impression that a couple of myths about mortgages are true, and this can result in them encountering problems with their loan. 

Myth: Pre-Qualification Is Good Enough To Start The Buying Process

Before you start shopping for a new home, the first step is to determine the amount of financing that you will have available. Generally, there are two terms used to describe this process, and some people get them confused. Pre-qualification is an estimate of the maximum amount of money that the borrower could potentially receive. Pre-approval is when an individual has been approved for a specific mortgage amount. 

As a result, you should generally avoid shopping for a house until you have received some form of pre-approval. In fact, most real estate agents will want to know you have been pre-approved for a mortgage before they invest a substantial amount of time in helping you find a home. 

Myth: There Is Nothing You Can Do To Lower The Interest Rate Of Your Mortgage

Sadly, there are many people that have had financial problems in the past that may result in a less than perfect credit history. When this is the case, you can expect to pay a higher initial interest rate, and for some people, this may push the dream of homeownership out of reach.

Luckily, there are often some steps that you can take to reduce the amount of interest you will be paying. Many mortgage lenders provide individuals with the option to do a rate reduction. This allows the borrower to pay a one-time fee to lower the interest rate on the loan by a specified amount. Also, there are many loan programs that will reward homeowners with reduced interest rates in exchange for always paying the bill on time. Talk to your mortgage lender to determine which programs are available to you for lowering the interest rate on your loan. 

A mortgage may be the only way that you can come up with the money needed to buy your dream home, but many people are ill informed about this financial resource. By understanding that these two prevalent myths are incorrect, you will be better informed when you are making a choice for your needs.