## Calculating for the Future: Understanding the Low Morgage Rates of Today

While seeing into your financial future can be difficult. Understanding a few key assumptions and numbers associated with your mortgage will allow you to get a good idea of the money you can be spending or saving in the years to come.

Today’s mortgage rates are the best in years, due to the slow economy and the housing market. Those wishing to apply for a loan may be pleased with the deals that are available. For instance, what is known as a jumbo loan now costs consumers less then ever. The current average rate for a thirty year fixed rate loan is approximately five percent. There are also rates available, depending on your personal circumstances, for as low as three and a half and four percent. To be eligible for these low rates, you will need to have a steady, good income, a down payment and a fairly low amount of debt.

How Do Consumer’s Qualify For Lower Rates?

To qualify for the lowest available rates, most consumers will have to pass several tests. There are a few general things that finance companies look for before first considering you for these low rates. One such qualification most banks and financial institutions require is for the prospective homebuyer to have proof that their total debt is not over forty percent of their income, before taxes. This includes debts such as car payments and credit card bills. You must also be able to show proof of your income and steady employment for up to several years. Your credit score has to be good, usually near seven hundred or better, which is quite high. And you almost always need to have a down payment of at least ten percent.

How to Use a Free Mortgage Calculator to Help Estimate Costs:

Using free mortgage calculators is fairly easy if you have the needed information on hand. If you are working with a realtor, they will be able to do the calculations for you. If not, you can easily use the tool yourself. The first step is to determine the principal amount that you will be paying on. Enter the amount on the mortgage or principal line of the calculator, which is almost always the first line. Next enter the number of years the loan is for. Enter the interest rate you’ve been given and click on the calculate button. The mortgage calculator should then give you the estimated mortgage you will be paying.

How to Use a Mortgage Calculator for the Future:

Most mortgage calculators are fitted with a tool that will allow you to estimate the possible value of your home in the future. To do this you will need to enter the home’s current value. You can usually get this information from real estate sites that include recently sold homes in your neighborhood, with houses that are similar to yours in age, size and appearance. Choose the year you would like to check to see what your home value might be, and enter it. Click on the key for appreciation rate. You can choose whether you would like to see the rates for several options, or for one just in your area.

Why Now is a Good Time to Get a Mortgage:

Recent marketing reports state that the prices of houses are becoming more stable. This is good news for those wishing to purchase a new home, or for those buying their first home. Although it is never possible to predict the outcome of the economy, today’s mortgage rates are some of the best ever for those who qualify.

## Love Your Work And Make Money From Home

What does it mean to be financially independent? What is retirement and why are you seeking it? If you don’t enjoy your job why are you doing it? How about trying to make money from home?

Some very interesting questions here and for many the answer seems obvious. I think that we go on autopilot and forget what it means to search for the truth on our own. We get to thinking that what others tell us is “how things are”. The reality is that most people have no clue what money is, how its created, or what to do with it. Want an example you say? ok, here you go. YOU are the example. You are chasing money, thinking its something you can go out and gather up.

Money is an idea. The idea that you and I can go and do the things we love to do and in sharing what we do with others we will be compensated for the VALUE that others think we have provided.

Retirement is like a virus because its in our nature as humans to try and do the least possible and be rewarded in return. So go and work for 40 years, then your 401k, employer, or other qualified plan will provide for you in the future. Well if you don’t like the work you did for that time period then why did you do it at first? Just for the end result of a paycheck?

Sounds like a waste of your precious time. Rather than spending your time suffering through life trying to “get by” go and do what you love.

Making money from home is a great option for stay at home parents, people that don’t want to work the regular job, want to be self employed, or for those simply looking for extra income. There are lots of scams on the internet so be careful of what you look into. My advice there is not to pay money on something that says you will make \$X in a certain time without ever saying what you will do, and then going on to say they cant because it will ruin it. Every real business is very clear what they do and they make money because others value their service.

## Turbo Tax Presents Overlooked Tax Deductions

TurboTax recently listed some common overlooked tax deductions that tax payers should consider when filing their taxes. Some of the often forgotten tax deductions included property taxes, the Child Care Credit, the Earned Income Tax Credit (EITC), and refinancing points. As long as you itemize your tax deductions, you should consider claiming the deductions that apply to your situation.

Property Taxes

The standard deduction can be enhanced if you pay property taxes during the year and do not itemize your deductions on Schedule A. Add an additional \$500 to the standard deduction for both 2008 taxes and 2009 taxes.… Read more at 2010 Tax.

TurboTax recently listed some common overlooked tax deductions that tax payers should consider when filing their taxes. Some of the often forgotten tax deductions included property taxes, the Child Care Credit, the Earned Income Tax Credit (EITC), and refinancing points. As long as you itemize your tax deductions, you should consider claiming the deductions that apply to your situation.

Property Taxes

The standard deduction can be enhanced if you pay property taxes during the year and do not itemize your deductions on Schedule A. Add an additional \$500 to the standard deduction for both 2008 taxes and 2009 taxes.

Child Care Credit

Make sure to claim child tax credits up to \$6,000 when you work have your children in child care. Often an employer will provide a plan that will pay for child care pre-tax but not up to the \$6,000 limit. If this is the case, take the extra amount up to the limit on your tax return.

Earned Income Tax Credit

Lower to middle income tax payers can claim the Earned Income Tax Credit and receive a tax refund greater than the taxes they paid during the tax year. Many miss out on the tax credit as they do not realize it is available to them. If your income has changed during the past year, make sure to study the EITC to see if you qualify. The tax credit varies depending on your income, filing status and family size. If you find that you are eligible, amend your past returns to claim this very generous tax credit.

Refinancing Points

If you purchased a home during the past tax year and paid mortgage origination points, you can claim all the points when you file your taxes and obtain a very good tax deduction. If you refinanced your home and paid points, you can claim the points you paid as a tax deduction spread out over the life of the loan.

# Selecting between Standard & Itemized Deductions

Filing a tax return annually is an important part of your business activity. But as you prepare your tax return, there is one question that may pop up a lot. And that is whether you should itemize your deductions or prefer to go with the standard deduction that the IRS generally provides to its tax payers.

Theoretically tax deductions are considered a very simple component of the tax reporting system. But ask someone who prepares his tax return himself and you will learn it’s not as simple as it is usually considered to … Read more at 2010 Tax.

# Selecting between Standard & Itemized Deductions

Filing a tax return annually is an important part of your business activity. But as you prepare your tax return, there is one question that may pop up a lot. And that is whether you should itemize your deductions or prefer to go with the standard deduction that the IRS generally provides to its tax payers.

Theoretically tax deductions are considered a very simple component of the tax reporting system. But ask someone who prepares his tax return himself and you will learn it’s not as simple as it is usually considered to be. To add to your worries is the lengthy and complicated tax forms. Keeping those complexities in mind it is often wise to just rely on the standard deduction given by the IRS. Or you could decide to go for itemized deductions. So, it’s important to find which deduction system will work best for you.

The standard deduction does not require any calculations or supporting documents and thus is the easiest way to go. You only need to calculate your annual gross income and then submit the calculated amount for your classification. The amount of taxable income differs based on your filing status. The eligible filing status’ are single, married (filing jointly or separately) or Head of Household. To qualify for head of household you have to be single and the primary or sole source of income for a household that includes qualifying dependants.

People may ridicule your decision to take the standard deduction. The fact is that with some types of tax issues, the standard deduction may not be the most suitable option. For people who have fairly simple financial transactions with a limited number of deductions, the standard deduction is usually the perfect choice. For example, if you are an employee of a company with an income of \$50,000, you rent your home and don’t have any major medical bills; you are definitely a person more suited for the standard deduction. And whether an itemized deduction will work for you or not may not be clear to you unless you attempt to itemize your deductions in a rough draft of your tax return.

Itemizing your deductions means categorization of every possible deduction. Itemizing of deductions always works best if your financial transactions involve a significant number and volume of tax deductions. For example, if you own a home which entitles you to deduct your mortgage interest and your medical bills are stupendous, you would certainly be better off if you itemize your deductions. In reality, there is no ideal condition or situation where itemizing your deductions is the only option. The example quoted above aims at giving you an idea of the situation where you can itemize your deduction.

In nutshell, if your financial transactions are simple, the standard deduction may be your best choice while in the case of a complicated financial life, itemizing your deductions may optimize your tax return.

So, when your deductions are figured out, the next thing is to find out the taxable income. In order to get your net taxable income, you will have to subtract these deductions from your adjusted gross income. The tax is then determined using the tax tables.