One of the perks of a mortgage is the "mortgage interest deduction." Read on to learn what a mortgage deduction is, how much you can reduce from your taxable income, and how you can take advantage of this tax incentive.

About Mortgage Interest Deduction

The mortgage interest deduction is part of your itemized tax deductions, and it subtracts any interest you've paid on loans used to build, purchase or renovate a property. This means that you can subtract a portion of the mortgage interest for primary and secondary homes every year when you do your taxes. This, in turn, reduces the amount you owe Uncle Sam. 

To be clear, this perk does not include payments you've made to your homeowner's and private mortgage insurance (PMI). Here's a list of

Veterans have benefits awarded exclusively to them for their dedication and service, including disability and education compensation, career training, health care, and even home loans. However, with federally-funded home loans, there is more than one option. When it comes down to it, what is the best – FHA loans or VA loans? This article will help you understand and make an informed decision on which loan is best for you. 

FHA Loans

An FHA loan is a US Federal Housing Administration mortgage insured by the government and provided by an FHA-approved lender. The requirements for FHA loans are not that hard to obtain, especially when it comes to the credit score. For example, some of the requirements for FHA are: 

• A credit score of 580 or

If you are considering purchasing a property to rent through Airbnb or are debating converting a current long-term rental into a short-term rental, you're likely weighing the pros and cons of running an Airbnb in Middle Tennessee. 

You’ve probably heard that renting properties through Airbnb, VRBO, or booking.com can be far more lucrative than long-term renting, which can be true but isn’t always so. Furthermore, even a successful Airbnb host may decide that the gig isn’t a good fit for their personality, lifestyle, and location.

So, let’s dive right in: what are the pros and cons of becoming an Airbnb host?

The Pros

1.) Higher Income Potential

The first, most obvious benefit to choosing short-term rentals is that they bring in

Purchasing real estate is one of the most reliable paths toward building personal wealth, especially in Middle Tennessee, where home values are consistently increasing. However, the amount of your home’s value that should be included in your assessment of your net worth is called equity, and it is our topic today. Whether you’re shopping for your first property, wondering whether equity can help you improve your current home, or are curious whether paying off more of your home loan now is the fastest way to beef up your wealth, we’re here to help. 

Q: What is equity, and how is calculated?

A: Simply put, equity is the dollar amount assigned to the percentage of your home that you independently own.

For simplicity’s sake, let’s use

An interest-only mortgage starts with payments that only pay down the mortgage interest. Generally, this makes your monthly payments lower than a typical mortgage payment. This option is attractive for those who cannot afford high mortgage payments. However, it has its drawbacks if you're not careful. Let's explore the benefits and disadvantages of interest-only mortgages. 

Benefits

• Interest-only loans give you time to increase your income. Are you expecting an income increase in the next few years? Then an interest-only loan can be advantageous. For example, let's say you're in a lower management position right now but on track for a promotion in the next year or so. Once you move up, your earning power will also increase. An

A home equity line of credit (HELOC) is a type of mortgage loan that acts similar to a credit card, except the line of available credit is tied to your home's equity. So instead of using funds advanced to you by a creditor, you use the cash from the value of your home.

HELOC Benefits

• Lower Interest Rates  HELOC interest rates tend to be lower than personal loans or credit cards. 
• You Only Pay For What You Use - You're charged interest only if you withdraw funds. 
• No Closing Costs - HELOCs often have low or no closing costs, making them an attractive alternative for small loan amounts. 

Applying For a HELOC 

Similar to applying for a mortgage, there will be a credit review and a home appraisal. However, some lenders may only

A title company's role is to verify that the current owner can legally transfer ownership to the home buyer – essentially, making sure the seller has the right to sell the property.

In this blog, we'll go over how a title company determines legal ownership and the process of transferring the title.

The Title vs. The Deed: Understanding the Difference

Although they may sound like the same document, a deed and title are very different. A deed is a legal document used to transfer the property from the current owner to the new owner. It's signed on the day of closing.

On the other hand, the title is a document stating who owns the property and whether there are any roadblocks to transferring the deed. When you're buying a new property, it's

In many regions of Tennessee, residents definitely need a vehicle to get around. Sprawling cities, patchy sidewalks, limited public transportation, and a lack of proper pedestrian infrastructures can make walking a challenge and a potential safety hazard. However, given the personal and environmental benefits of walking daily, it’s well worth it to dedicate some extra time when house hunting to find a home in a walkable neighborhood.

Why walk when you can drive?

Walking often reduces body weight, elevates the mood, improves balance, strengthens muscles, improves bone density, and develops coordination over time. Walking can fend off heart disease, reduce high blood pressure, and improve our body’s response to insulin, which, along with lowered

A home inspection alerts you to any immediate repair concerns plus gives you an idea of what it may cost to maintain the home in good condition. 

Let's take a closer look at the home inspection process so you know what to expect, and what the inspection does and does not include. 

What to Expect During A Home Inspection

Before finalizing your offer to purchase a property, your real estate agent can arrange for a home inspection. The home inspector’s job is to look for any potential problems with the home and document their findings in a report. 

A home inspection isn't the same as an appraisal. 

An appraisal estimates your property's value, whereas a home inspection looks for problems in the home. Another difference is that lenders

A condo refi is similar to refinancing any other home. The lender will look at your income, assets, and credit to ascertain your qualification. Plus, the condo will also be appraised to determine the property value.

However, since there are more variables when refinancing a condo, such as shared amenities, lenders usually conduct a condo review. 

It's worth noting that not every condo will require a review. A conventional loan refi of a detached condo typically won't need one since they're considered a single-family residence. The same goes for condo projects with four units or less.

Otherwise, it's safe to assume that you will need a review to refi your condo. Here's what that might look like. 

Condo Review For Government-Backed Loans