Scott Kinne First Heritage Mortgage

Scott Kinne's Mortgage information Blog

  • About Scott
  • Testimonials
  • Resources
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Affordable Credit Repair
    • Interest Rates
    • Loan Programs
    • Loan Process
    • Loan Checklist
    • Mortgage Glossary
    • Mortgage FAQ
  • Main Website
  • Contact
  • Apply

Wealthy Americans Are 25% More Likely To Hold Mortgage Debt

April 11, 2007 by Scott Kinne

The wealthy carry more mortgage than the non-wealthy

Interesting fact of the day: 55.5% of “wealthy” Americans have mortgages on their primary homes vs. 44.6% of the overall population.

This doesn’t mean that the wealthy are more indebted than the rest of us; it means that the wealthy are maximizing the tax deductions that the IRS makes available to every homeowner in the country.

It’s also possible that wealthy Americans may be more likely to work with financial planners and CPAs to devise short- and long-term financial plans that take advantage of mortgage interest.

See, unlike every other type of consumer debt, interest paid on most home loans are tax-deductible and are deducted from the homeowner’s annual income. For this reason, a homeowner’s “bottom line” interest cost is much, much less than his note rate.

If you are in the 28% tax , for example, and your note rate is 6.00%, your “bottom line” interest rate is 4.32%. Check with your CPA for exact math, of course.

Wealthy or not, every homeowner should consider the impact of losing tax deductions before paying off their mortgage. If the wealthy are doing it and they have a team of advisors surrounding them, maybe there’s something to it for everybody else.

Filed Under: Uncategorized

Scott Kinne

Contact Scott

Vice President, Senior Loan Officer
NMLS ID #182351
Office: 703.293.6146
Mobile: 571.237.6241
Fax: 571.317.2478
skinne@fhmtg.com

Licensed in
MD, DC, VA, SC, FL, and GA.

  LOAN APPLICATION
  FREE RATE QUOTE

Connect with Me!

Sign Up For My Free Newsletter

Categories

Recent Posts

  • A Quick Look at Reverse Mortgages: The Golden Ticket to Enjoying Your Golden Years
  • Understanding Mortgage Amortizations and Why Longer Periods Can Cost More
  • What Does Contingent Mean on a House Sale
  • What Does Contingent Mean on a House Sale
Equal Housing Lender
nmlsconsumeraccess.org
First Heritage Mortgage, LLC, Company NMLS ID #86548

Our Location

3201 Jermantown Road
Suite 800
Fairfax, VA 22030
Business: 703-293-6146
Cellphone: 571-237-6241

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in