what is a 2nd mortgage

what is a 2nd mortgage

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A second mortgage is a mortgage lien on your home in addition to your primary mortgage lien (i.e. your first mortgage). Typically, second mortgages take the form of a home equity line of credit.

fha self employment guidelines Fha Self Employment Income Calculation | Fhalendernearme – Self Employment Tax Calculator from Bankrate.com – Self-employment taxes cover Social Security and Medicare taxes that, in the case of individuals who work for others, are taken care of through payroll withholding. However, if you are self-employed, operate a farm or are a church employee, you may owe self-employment taxes.

A second mortgage can be a home equity loan or a home equity line of credit taken out in addition to a regular mortgage. People obtain second mortgages in order to pay for home improvements, consolidate personal debt or to reduce the down payment on their primary mortgage.

The interest you pay on your second mortgage is tax deductible, just like with your first mortgage. The IRS does limit the amount, though. As of 2011, you can deduct the interest on up to $1.1 million in debt on both homes combined.

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