3. Los Angeles Mortgage Broker Bill Rayman Discusses How to Set Up a Mortgage Plan
|Bill Rayman - Mortgage Banker and Broker|
Start your planning process by creating a realistic budget to determine how much of a monthly payment you can handle. There are many excellent free budgeting formats on-line. If you are considering purchasing your first home, keep in mind that there are many expenses associated with home ownership that you don’t now have with a rental. Among other items, you need to include in your plan: utilities cost more; repairs and maintenance expenses; furnishings, flooring, and window treatments in and of themselves are huge expenses; gardening and lawn care; appliance purchases; property taxes; and, property insurance.
One of the benefits of home ownership is the tax deductibility of many of its costs. The interest on your mortgage, property taxes, potentially your mortgage insurance, some part of any HOA dues, and some home expenses can reduce your taxable income. Besides reaping the savings, this will improve your monthly cash flow. Even though you don’t get the tax relief until you file with the IRS, you can plan to take advantage during the year by adjusting the withholding on your wages or on your estimated tax payments. Consult with your tax preparer to determine the best way to achieve those savings.
If you need someone to help you with all the steps outlined in this series, or just want to select a mortgage broker who cares enough to make sure your needs are met at every level, give me a call at 310-295-6213 for a no cost, no obligation evaluation of your plan.