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Always with any home loan or major purchase you should consult your tax advisor for advice about your personal situation. The information below is strictly informational and may not apply to your personal situation.

How is the assessed value of a property determined?
In some states, the local tax assessor determines the assessed value of a property, and uses that value to calculate the amount of tax to be paid. In other regions, there is an automatic inflation percentage added to the market value, which is the sale price of the home.

Your selling a house and your going to sell it for more than you owe. Tax wise, what does this mean?
Will this hurt you or will you be able to benefit from the capital gains. Well you may be surprised to find out that you may not have a to pay taxes on those capital gains, you may actually be relieved from paying taxes. All of this relies on your tax professional, his advice and if....

• You owned and lived in the house as your primary home for at least 2 out of the last 5 years.
• Your gain was less than $250,000 (or $500,000 married filing jointly).
• You've not sold another primary residence in the past 2 years before the sale.
• You have not depreciated your home while using it in a business or rental activity.
• If you do not meet any the above conditions, then you may have to pay taxes on part of your capital gain.

What are the tax benefits of home ownership?
Mention taxes, and most people are immediately stressed. Mention tax benefits, however, and you will probably get a happier reaction. This is a great advantage to home ownership. Along with being an investment, home ownership can help you save money by offering tax breaks via certain itemized deductions from your income tax. Talk in more detail to your tax professional about these benefits.

Can I deduct the home loan interest payments?
Interest that is paid on a first mortgage, second mortgage, home improvement loan, or a home equity loan can be tax deductible. First, the deductions are limited to a maximum of two mortgaged residences. This may be a primary residence and one other property, such as a vacation home. Rental and business properties are not considered in this limit of two. The next limitation is the amount of the debt.

Are there tax breaks for financial hardship home loans?
Low-to-moderate income homeowners may be eligible for mortgage interest tax credits that are available for a portion of the interest they pay.

What do property taxes cover?
It often depends on the area's tax base. In areas with a predominantly residential property tax base, tax dollars go toward everything from the fire department and schools to the town library. In other areas, industry and commercial property take on more of the tax burden.

Which closing costs are tax-deductible?
Three closing costs are tax-deductible in the year of the sale: loan points (one point equals 1 percent of your loan amount), prorated mortgage interest, and prorated property taxes. After that, your mortgage interest and annual property taxes are the only deductible costs. For a refinanced loan, points must be deducted over time.

How are the funds from my escrow account used?
The funds from your escrow account are used to pay property taxes and insurance. The payment is called an escrow payment, and a mortgage lender withdraws the money.

What type of insurance do I need prior to closing?
You will need proof of homeowners, title insurance, and possibly flood insurance (if applicable) prior to closing. If Private Mortgage Insurance is required, your lender will make the arrangements.

Is Title Insurance always necessary?
Yes. The title is the formal document that establishes ownership of property. Title insurance is necessary to make sure the title of the property is clear of liens, easements or other claims that could affect the transfer of the title. Title insurance covering the lender is always required. Owner's coverage is available for a small incremental cost and is highly recommended.

How will I know whether I need Private Mortgage Insurance?
In most cases, if your first mortgage amount is greater than 80% of the property's value, the lender will obtain Private Mortgage Insurance (PMI) to safeguard its investment against the possibility of default. PMI premium is collected monthly along with the mortgage payment.