LJ Posted January 8, 2009 Report Share Posted January 8, 2009 .. It's actually smarter to pay your taxes on your own. I reduce the amount I pay on my property taxes every year by $200, you reduce yours by 0. Although I think you have to have a large % down in order to not escrow. I had 45-55% down. Quote Link to comment Share on other sites More sharing options...
AJ Posted January 8, 2009 Report Share Posted January 8, 2009 It's actually smarter to pay your taxes on your own. I reduce the amount I pay on my property taxes every year by $200, you reduce yours by 0. Although I think you have to have a large % down in order to not escrow. I had 45-55% down. yeah but alot of people don't have 50-60k laying around. and i don't have to pay home owners insurance since thats all in my payment as well. saves me from having to set aside money for taxes and insurance. Quote Link to comment Share on other sites More sharing options...
LJ Posted January 8, 2009 Report Share Posted January 8, 2009 yeah but alot of people don't have 50-60k laying around. and i don't have to pay home owners insurance since thats all in my payment as well. saves me from having to set aside money for taxes and insurance. You do pay homeowners insurance. I'm telling you, while not wrong to just pay the escrow, it is not, by any means whatsoever, stupid, to pay the taxes on your own. It is actually the smarter move financially. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted January 9, 2009 Author Report Share Posted January 9, 2009 thanks for the info. i talked to my mom and she told the realtor i wanted to talk to her. havent checked my email yet, so maybe theres something from her so i can go talk with her Quote Link to comment Share on other sites More sharing options...
evan9381 Posted January 10, 2009 Author Report Share Posted January 10, 2009 It would adjust your AGI down. So if you have 40k taxable income and you have 6k in mortgage interest and property taxes, you would owe tax on 34k, not 40k. Also, it only works if the amount is more than the automatic standard deduction wait. theres 2 deductions turbotax shows for me. one is like 3500, the other is like 5000. it has to be higher than whichever one is the standard deduction to get that? so if my standard deduction is the 5k (and it might be the 3500), and my mortgage taxes/intrest for the year is 4k, it would take the larger one? i finally got a call from the realtor, she wants me to go to my bank and see what i can get prequalified for so i can get a guage on what i can look for Quote Link to comment Share on other sites More sharing options...
LJ Posted January 10, 2009 Report Share Posted January 10, 2009 wait. theres 2 deductions turbotax shows for me. one is like 3500, the other is like 5000. it has to be higher than whichever one is the standard deduction to get that? so if my standard deduction is the 5k (and it might be the 3500), and my mortgage taxes/intrest for the year is 4k, it would take the larger one? i finally got a call from the realtor, she wants me to go to my bank and see what i can get prequalified for so i can get a guage on what i can look for $3500 is self exemption, which you automatically get the $5k is your standard deduction So you are correct, if your taxes and interest are 4k, you would only get your standard deduction. Although there is supposed to be something supposedly in 2009 where you will get part of your interest added on top of your standard deduction, or something like that. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted January 10, 2009 Author Report Share Posted January 10, 2009 hm. from what ive seen though, the first years, i pay hardly anything on principle, and a shitload in interest, so maybe like 6k in intrest. so really, it might lower my taxable income 1-3k with taxes? realtor emailed me about 24 properties, some of which dont look bad. just gotta see what the bank says tomorrow, and what i can get for an intrest rate with my credit. Quote Link to comment Share on other sites More sharing options...
AJ Posted January 10, 2009 Report Share Posted January 10, 2009 i finally got a call from the realtor, she wants me to go to my bank and see what i can get prequalified for so i can get a guage on what i can look for when we were looking at that we looked at the house and then went to see how much we were prequalified for and they said yes you are prequalified. we asked for how much and they said they didn't know. the realtor told them how much the house was and how much we needed and they they said we were approved for $238,891.00 even though we only morgaged 208,000.00. also get a prequal. letter, that shows you are able to buy what ever house you are looking at in that price range and they are more willing to work with you on a price. Quote Link to comment Share on other sites More sharing options...
AJ Posted January 10, 2009 Report Share Posted January 10, 2009 also intrest rates have gone up in the past 2 weeks, not alot but they are around 5.6-5.8 national average. we lucked out and tried to lock at 5.38% but they were not in the office when we told them to lock it and by the time she got to her computer the rate droped to 5.00% Quote Link to comment Share on other sites More sharing options...
evan9381 Posted January 10, 2009 Author Report Share Posted January 10, 2009 i went in today and he said that the lowest is at 5.10, which he doesnt think i can get, but 5.2-5.3% should be pretty doable. he has to submit the paperwork to the mortgage guy who will call me on monday or tuesday. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.