First Time Homebuyer, Needs Some Mortgage Advice.

1. The tax benefit is best asked of an accountant or tax advisor not a mortgage loan officer.  Remember most LO's are out to sell you a mortgage so the advice you are given may be slanted.  I won't say will be slanted because I know a lot of good lo's that offer good solid advice.  However the tax implications of a home purchase are not what a loan officer should be offering advice on.

2. Most 1st time homebuyer programs offer a lower down payment than a normal conventional mortgage.  Programs such as Rhode Island state Housing.

3. No magic loans, no magic lenders and no magic pricing.  You need to look at it in reverse.  What are you comfortable paying each month and based on that you can determine if what you want is available.  Pleanty of creative ways to increase your buying power but truthfully you want to maximize your buying power within your budget.  Start with figureing out what your budget is.

Michah,

Mortgage payments consist of principal, interest, taxes (1/12th of annual) and insurance (1/12th).  At the beginning of a mortgage most of the principal and interest part is going to be interest.  On your taxes you are able to deduct all the interest and real estate taxes.  That should make quite a difference in the amount of taxes you pay.  As far as benefits for 1st time homebuyers - there are programs that allow you to have less of a down payment and some even offer lower rates depending on your income.  Getting the most house for your money will depend on how well you or your agent can negotiate.  Recently there have been a lot of bank-owned properties available and the prices are generally very good.  I've had many clients get great deals on bank sales with their closing costs paid by the bank.  Good luck with whatever you decide to do!

1. Any interest and taxes paid for your loan and property are tax deductible, although I wouldn't buy just for this reason alone.

2. Dont know, not a lender.

3. The more properties you look at, the better your chances are on getting a good deal. Make sure you make all the final decisions since you will be the one who has to live with them.

Good luck.

You may also consider the possible benefit of the First-Time Homebuyer Tax Credit that was included as part of HR 3221.  It is applicable if you purchase before July 1, 2009.

The max credit (incentive) amount is $7500.  Iit must be repaid, so it's actually an interest-free loan from the government.  There are a lot of details that go into determining what your benefit would be, but it's definitely something to be aware of as a first time homebuyer.

Someone looking in RI? George Devine picked a great week not to be here.

George is too busy ripping heads off of bunnies right now.

1) Do you pay taxes on money that goes towards a mortgage?

No. However, there are tax benefits of owning a home. To get an idea of wha those benefits are, it's best to talk to an accountant tax professional. In addition, part of your monthly mortgage payment will include 1/12 of your property taxes.

2) What benefits exist for a first time home buyer?

The State of Rhode Island has some programs available for first time homebuyers. Check out Rhode Island Housing at http://www.rhodeislandhousing.org/sp.cfm?pageid=1919 and HUD's Homeowner Assistance for Rhode Island at http://www.hud.gov/local/ri/homeownership/buyingprgms.cfm. In addition, you may qualify for a tax credit of up to $7500 if you buy a house before June 30, 2009. For more information, see First-Time Home Buyer Tax Credit at http://www.federalhousingtaxcredit.com

3) How can I get the most house for the least money? I am interested in either single or multi-family properties. No condos or trailers.

You will need to be pre-approved for a mortgage to find out how much house you can afford to buy. Find a good lender in your area. Once done, find a good real estate agent who represents buyers - don't buy a house through a listing agent. Sit down with the buyer's agent to go over your wants and needs, and let him or her do the searches for you. Ultimately, you decide what house will b st meet your needs, so be sure to communicate with the buyer's agent throughout the process to help him or her find that perfect house for you.

Good luck!