Mortgage tips

There are ways to make the best of high mortgage payments.

Paying mortgages isn’t fun. They’re usually large payments, and they often remind homeowners of an investment they fear will never pay off. has some tips on how to make the best of a bad situation if you’re paying a mortgage. Here are just a few:

1.Cut your taxes. The interest on up to 1.1 million of your mortgage debt is deductible from federal taxes. With the money you save on taxes, a five percent mortgage rate can look more like a three or four percent one. The more you’re taxed (i.e. the higher income bracket you’re in), the more money you’ll save.

2.Pay back as early as possible. If you decide to refinance and take the long-term (30 years) loan with the higher interest rate and you pay everything back early (15 years), you will incur less interest costs than if you paid throughout all 30 years. Plus, if anything bad happens, at least you’ll have more time to repay it and not have your home foreclosed.

3.If your home value plummets, you don’t have to repay the loan. A bank can’t force you. You can just give them your collateral (the home) and move on with your life. The bank will have no right to your other assets. This move is particularly valuable when your mortgage payment due is worth more than the value of your home.

4.Take out some home equity and profit from your mortgage by investing in stocks. You can use the equity, invest the money in over 100 companies to spread risk, and get a return that can help assuage mortgage troubles.

These are just a few ways to keep your stress in check when it comes to making mortgage payments.  Thanks for reading and come back soon for more tips and news from the real estate industry.