Brenda Wilson's ERA Kokopelli Real Estate®

Oops!

We're sorry! But your web browser does not have scripting enabled, which is necessary in order to use this page. Please enable scripting and refresh this page or call us at one of the phone numbers given below.

Finding the Cash

Hidden assets can put a down payment and closing costs within your reach. Even if you don't have the cash now, your friends and family may make an informal loan against future tax refunds (Items 1 and 2). There are other sources, too (Items 3 through 10). Verify your options with your tax consultant, mortgage lender, and Brenda.

1. Get an income tax refund on your monthly mortgage payment. Use this chart to find your Average Monthly Interest.

Example: A person in the 28% tax bracket who takes the standard deduction borrows $75,000 at 8.25% interest for 30 years, and closes on May 30.

$513.68 Average Monthly Interest, first 12 months

x 0.28 Tax rate (15, 28, or 31% in 1998)

= $143.83 Average monthly tax break, first 12 months

x 7 Number of payments, first tax year

= $1006.81 Additional refund possible for new buyer

You can press the <Tab> key to move the cursor, and the green items are automatically calculated.

Enter your numbers here:

Average Monthly Interest, first 12 months

x Tax Rate (.15, .28, or .31 in 1998)

= Average monthly tax break, first 12 months

x Number of payments, first tax year

= Additional refund possible for new buyer

Informal loan against tax refund:

2. Take a first year tax deduction for points paid on a mortgage.

Example: A person in a 28% tax bracket who takes the standard deduction pays 3.5 points to borrow $75.000.

$75,000 Total mortgage amount

x .035 Points (Example: 3-1/2 = .035)

= $2,625 Deduction for points

x .28 Tax Rate (.15, .28, or .31 in 1998)

= 735.00 Additional refund possible for new buyer

Enter your numbers here:

Total Mortgage Amount

x Points (Ex: 3-1/2 = 0.035)

= Deduction for Points

x Tax Rate (.15, .28, or .31 in 1998)

= Additional refund possible for new buyer

Informal loan against tax refund:

3. Keep abreast of the news; look for special federal tax incentives.
4. State-run programs, deductions, or tax credits may put money in your pocket:
5. Your employer may have a program to help valued workers:
6. You've saved some money, haven't you?
7. Sell something of value, like a boat or a car:
8. Perhaps a relative or friend can give (not lend) cash:
9. Borrow against a life insurance policy or pension fund:
10. Cash in an IRA or annuity prematurely (consult a tax expert first):

TOTAL HIDDEN FUNDS:

Front Page Property Listings Relocate Meet Brenda
ERA Mortgage Financial Planning Contact Us Site Map

Kokopelli Real Estate^™

Brenda Wilson

brendawillsell@erakokopelli.com

1301 N. Richardson, Roswell, NM 88201
Office: (575) 627-7700
Fax: (575) 627-7707
Toll Free: (866) 384-7700

Site created by EveningStar

$513.68	Average Monthly Interest, first 12 months
x 0.28	Tax rate (15, 28, or 31% in 1998)
= $143.83	Average monthly tax break, first 12 months
x 7	Number of payments, first tax year
= $1006.81	Additional refund possible for new buyer

	Average Monthly Interest, first 12 months
x	Tax Rate (.15, .28, or .31 in 1998)
=	Average monthly tax break, first 12 months
x	Number of payments, first tax year
=	Additional refund possible for new buyer

$75,000	Total mortgage amount
x .035	Points (Example: 3-1/2 = .035)
= $2,625	Deduction for points
x .28	Tax Rate (.15, .28, or .31 in 1998)
= 735.00	Additional refund possible for new buyer

	Total Mortgage Amount
x	Points (Ex: 3-1/2 = 0.035)
=	Deduction for Points
x	Tax Rate (.15, .28, or .31 in 1998)
=	Additional refund possible for new buyer

Find The Money You Need

Finding the Cash