mortgage - Herman & Co. CPA

Tax and Finance Tips for Buying a Home in Westchester County

As a homeowner in Westchester County, Westchester accountant and personal finance expert, Paul Herman knows first hand how to help ease the stress on your home buying experience in Westchester, and of course save money in the process!

Life Situations and Finances: FAQs

Think about paying down your mortgage. This is an effective way for saving and raising net worth for many people. Make a decision to pay a specific amount more than the mortgage principal and faithfully stick to it.

Steps to Reduce Your Cost of Living

See if your utility has a subsidizing program to make your home more energy-efficient. If that turns up nothing, you can still caulk your windows and check the insulation to make sure it has a high enough “R” factor.

Getting a Loan 101

It is highly recommended that you prepay as much of your mortgage as possible every month, which will drastically reduce the total amount that you pay. However there are times where this could be disadvantageous. If you are in a situation where you don’t have funds to cover three to six months of expenses, it is recommended that you save that amount before you pay additional amounts on your mortgage.

Loan FAQ’s

What are the possible implications if I co-sign for a loan? The co-signer enters an agreement to be responsible for the repayment of the loan if the borrower defaults. A lender will usually not go after the co-signer until the borrower defaults, but they can lawfully go after the co-signer at any time.

Risks of Interest-Only Loans

Not repaying principal, and therefore not building equity through debt retirement, means that an interest-only borrower is counting on market appreciation (price inflation) to help them own more of their home. Of course, this requires that prices increase while they hold the mortgage.

Refinancing Your Home

Westchester NY tax preparers at Herman & Company CPA’s have all the answers to your personal finance questions! Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans. Generally, for taxpayers who itemize, the points paid to obtain a home mortgage may be deductible as mortgage interest. Points paid…