A VA Loan can be yours.
Maximizing your tax advantage might just be the most profitable but unknown way to save money on a monthly basis. Most homeowner’s do not realize they at times spend as much money on consumer debt such as credit cards, car loans, and installment loans as they do on their home mortgage.
The mortgage interest, property taxes, and mortgage insurance if there is any are all tax deductible expenses. These items are added up as part of your Schedule A itemized deductions and subtracted from your taxable income. Depending on your effective tax rate, a home owner can easily save a few thousand a year just from writing off their housing costs.
If there is adequate equity in your home, it might be possible to create more tax advantage by rolling the additional consumer debt into your home mortgage. Once consumer debt is converted into mortgage debt, the interest expense moves from being just a firm monthly cost to a tax deductible expense. The additional write off could save you several hundred dollars a year which you can put in the bank instead giving it to Uncle Sam.
If all of your debts are currently tied into a home mortgage there still could be an opportunity to keep more money every month. Many home owners claim too few exemptions on their W-4 form and pay too much money to the federal government out of their pay checks every month. At the end of the year they receive an oversized tax refund at the end of the year. Increasing your exemptions is a strategy to collect more money out of your paycheck to utilize on a monthly basis rather than wait for it all year long.
