1st Loan Modification of America Presents More Reasons to Buy a Home

About

In a recent post, 1st Loan Modification of America outlined three reasons for buying a home as a good investment. To follow up, 1st Loan Modification of America offers four more excellent reasons to become a homeowner, even in today’s economy.

First of all, 1st Loan Modification of America notes that as long as a homeowner has resided in a home for two of the past five years, he or she can exclude up to $250,000 for an individual ($500,000 for a married couple) of profit from capital gains. Considering that the homeowner does not have to buy a replacement home and that there are no age restrictions, 1st Loan Modification of America recognizes this as a great value.

In addition, 1st Loan Modification of America reveals that if a homeowner receives more profit than the allowable exclusion upon sale of a home, that profit will be considered a capital asset. 1st Loan Modification of America explains that this holds true as long as the home was owned for more than one year — and capital assets receive preferential tax treatment.

1st Loan Modification of America recommends utilizing the amortization process, wherein the percentage of principal in a mortgage payment increases every month. 1st Loan Modification of America estimates that on average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of the first 12 months to $99,500.

Finally, 1st Loan Modification of America says that for many homeowners, it makes sense to pay off credit card debt (often rated at 18% to 22% and non-deductible) with a home equity loan. Equity loan interest is often much lower and it is deductible. 1st Loan Modification of America adds that homeowners can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business, and 1st Loan Modification of America encourages homeowners to consider it for debt relief as well.

For more information contact 1st Loan Modification of America, LLC at 702-227-9660 or email them at modifications@1stloanmodificationnow.com.


One Response

05.22.10

1st Loan Modification of America is an established, highly respected loan modification company. 1st Loan Modification of America specializes in one thing, and that is keeping their clients in their homes while making them more affordable.

Leave Your Response

* Name, Email, Comment are Required