Everyone has a bad month sometimes. Maybe your iguana gets colitis and you need to pay for its surgery. Maybe you had a run of bad luck at the track. Whatever the cause, you’re going to have trouble making your mortgage payment this month.
Missing a payment isn't a big deal if you have a skip payment mortgage. This structure includes a provision that allows the mortgage borrower to skip payments every so often, without any major implications. No damage to your credit. No nasty notices. No foreclosure threats. No neckless guys in tracksuits knocking on your door at midnight.
The details of the program depend on the particular mortgage contract. But a typical version might stipulate that, like, every year, you can skip one mortgage payment without incurring any fees or penalties. Usually, other conditions apply. Like you have to be otherwise current with your mortgage. Also, skipping the payment likely extends the length of the mortgage (you have to pay that money, sometimes). But having the option of skipping that payment once in a while gives you the ability to ride out a tough month here and there.
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Finance: What is a Mortgage?345 Views
Finance allah shmoop shmoop What is a mortgage Well people
a mortgage is just dead it's alone but one with
special tax treatment For most people simply put Any interest
you pay on a mortgage to buy a home is
tax deductible Morty morton's inputs down a hundred thousand bucks
to buy a home that costs four hundred big ones
his mortgages three hundred grand at five percent interest per
year So that's fifteen thousand dollars a year he pays
to rent the money from the bank which he uses
to buy his dream home with the loop de loop
waterslide Morty earns one hundred grand a year and pays
tax on his last fifteen thousand of earnings soas faras
The irs is concerned since morty can deduct his fifteen
thousand dollars in interest against his earnings he does not
in fact earn taxable wages of one hundred grand annually
Instead he earns taxable wages of eighty five thousand dollars
a year Essentially with government is doing is sharing in
some of the cost of renting the money Taub i'm
ortiz home well why would the u s government be
so charitable Well because home ownership has been integral part
of the american dream since the u s of a
i po'ed in seventeen seventy six easy access to mortgages
and then home buying can be a hugely beneficial asset
In the vast majority of cases homes create family stability
a store of wealth and tax dollars for local schools
in the form of real estate taxes So don't feel
bad about splurging on that water slide there Morty Just 00:01:42.93 --> [endTime] remember you're doing it for the kids Hello
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