Mortage Loans


A loan that is secured by property or real estate is called a mortgage. In exchange for funds received by the homebuyer to buy property or a home, a lender gets the promise of that buyer to pay back the funds within a certain time frame for a certain cost.

When you're writing those seemingly endless gigantic mortgage checks to your bank each month, probably the last word that comes to mind is "advantage." A more appropriate word might be "pain." But there are several advantages to having a mortgage, so a little short-term pain can often result in long-term gains.

Your mortgage may be the biggest tax break available to you. You can generally deduct any interest you pay on your mortgage loan, which is especially important during the early years of the loan, when most of your monthly payment consists of interest. If you purchase points, which is the process of paying an additional percentage of your loan up front in exchange for a lower interest rate, you can also deduct their purchase price.