I know, but sometimes I just want to get out and do something different.
If that sounds like you, then you really should consider selling your house. We’re not talking about just pulling out of your mortgage (that takes a while), we’re talking about selling your house before the end of the year, which means you’ll have to pay a lot less in taxes and fees. The reason that this is a good idea is because if the sale goes through, you’ll no longer be able to deduct the mortgage interest on your taxes.
What happens to the mortgage interest deduction when you sell? Do you still have to pay any interest? If not, are you allowed to claim that deduction on your taxes? If not, then youll have to pay that interest on your taxes, regardless of whether you sell your house or not. If you still don’t get to deduct the mortgage interest on your taxes from the sale price, you might want to check the IRS.
When we bought our house, we bought in the first quarter of 2017, but by the time we sold our house we had already paid off most of the mortgage. The mortgage interest deduction is allowed for the first two years that you’re paying for the mortgage, which we assumed would be all of 2017, but we’re still having to pay it. As a result, we’re in the exact same situation as many homeowners, no interest-free money at all.
And that’s kind of bad, isn’t it? After all, it was those same homeowners who were buying in the first quarter of 2017 and paying off the mortgage in the exact same amount we paid down. So, as a result, they should have been able to deduct the interest paid on the mortgage for the first two years. But you know what? This has happened before.
It seems a bit odd that so many homeowners are able to avoid paying it off, but I know that it is somewhat standard. It’s why it is so easy to buy a house nowadays. The mortgage is so cheap, and because it is so easy to buy, the tax burden is so low.
How about buying a home in a similar situation? I think this is a good place to start. You could probably do this by investing in a house that’s just a piece of wood, but you’ll have to pay the mortgage.
But I think it is good to look at the facts about the situation. Most of America’s mortgages are now below 20% (which means you pay 2.5% interest every year, which is on the cheap). But that 20% is also the amount that will be forgiven as a down payment if you buy a house within 2 years of paying off your mortgage.
So, if you buy a house within the next 2 years, the mortgage is forgiven. If you do it within the next year, you have to pay 20 for the mortgage. If you go over the 2 years, you must pay 20, up to 60% of the cost of the house, and this is on a $10,000 house. So it’s a lot.
This is another thing that’s pretty common in the real estate world. You’ve got to be realistic about how expensive it is to buy a house and then pay down the mortgage in the next year or two. If you don’t, you end up paying a lot more than you would have to if you’d have waited to buy the house.