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August 1, 2016

11 Year End Tax Savings Tips

Filed under: Tax — Tags: , , — admin @ 12:47 pm

This time of year, now through the first quarter of next year, you will see articles offering year-end tax planning tips. Tax planning tips can increase income in future years, so be careful. Many tax tips often involve accelerating deductions, deferring income, or last-minute charitable deductions (the first three following tips).

For example you may be compelled to make a large charitable contribution this year by December 31st. However if you could be in a higher tax bracket next year because your income is going up because of a substantial raise or bonus, you would have been better off to make the contribution next year. Some may say this is heartless, but I say just the reverse. If you pay less in taxes because of good planning, your will be better off financially and able to give more in the future.

If you have volatile income, before you use the tax savings tips here and in other articles, you may want to run projections for this year and next. A good accountant will run these calculations for you, but understand that tax law changes from year to year and from one administration to the next can often make predicting tricky.

1. Defer income

If you are able to defer income, such as commissions and bonuses until next year, you might be able to pay lower income taxes this year. However, you must consider what your income and taxes will be next year to be sure that you are not actually increasing your taxes.

2. Accelerating deductions

Accelerating major deductions such as state income taxes, property taxes, and mortgage interest may help anyone, especially during a high-income year. If you don’t think your personal income tax bracket will be higher next year, and you’re not affected by the alternative minimum tax, you can make state and/or local tax payments before the end of this year so you can take a deduction this year.

3. Charitable Contributions

Consider making chartable deductions before the end of the year to receive a deduction. You must make the contribution by 12/31/2007.

Donate appreciated property such as real estate or stock instead of the proceeds of the sale. You may be able to receive a deduction for the value of the contribution without paying tax on the growth portion resulting from a sale, then a gift. If you intend to transfer appreciated property, begin early since it will take several weeks to make the change.

4. Alternative minimum tax traps

Many people face large AMT bills compared to previous years. Be warned if you have larger than usual medical expenses, non-federal income and real estate taxes, or miscellaneous itemized deductions; or if you have exercised large stock options, to name a few.

Year-end tax planning strategies can backfire under AMT. Be very careful accelerating some deductions and exercising stock options at year end. See a tax professional for information on your specific tax situation.

5. Be careful when investing new money in mutual funds at the end of the year

Call the mutual fund and find out when the distribution date is. You may want to purchase after the distribution date to avoid owing taxes on fund shares that you owned only for a short period of time and had little to no gain.

6. Contribute the maximum to retirement accounts

Contribute the maximum allowable to employer-sponsored defined contribution retirement plans, such as profit sharing, 401(k), 403(b) and 457(b) plans. This not only provides an excellent tax deduction, but it also helps you to plan for your future retirement.

You may want to contribute to an IRA; up to $2,000 is fully deductible if you did not participate in a company-sponsored retirement plan or if your income falls below certain levels.

If you are self-employed, you can contribute more to a pension plan than into an IRA. You have until December 31 to set up the plan.

7. Investment Losses

If your investment portfolio has stock that has depreciated in value and is worth less than when you originally purchased it, you may want to consider selling it. You may be able to use that loss to offset capital gains and ordinary income.

Be careful though; investment decisions should not just be for tax purposes. Make sure that you do your research before selling any investment. Some people react too quickly when investments lose value; others sometimes hold on too long. If you decide to sell and invest in something new, make sure that you examine your portfolio to ensure that you have the right mix of investments to match your investment profile, risk propensity and asset allocation model.

8. Save for College

Consider contributing to your child’s college savings into a 529 plan. The contributions are not deductible on your Federal return, but parents may be able to write off contributions up to a certain dollar amount on their state income tax return. Log on to SavingforCollege.com to find out information about your state.

9. Home Improvements

Here is a great deal. How about saving energy and the environment, lower utility bills, increase the value of your home and save on taxes

March 10, 2016

Appraisers lower costs for federal tax savings

Filed under: Tax — Tags: , , , , — admin @ 12:46 am

Tax savings through cost segregation is no longer out of reach for investors in small and medium size properties. With appraiser expertise, fees for analysis are often one-third to one-half lower than those charged by traditional preparers.
Several years ago a definitive court case ruled that tangible personal property included in an acquisition or in overall costs should be depreciated as personal property for asset recovery, using the old Investment Tax Credit principles to classify personal property.

This meant that owners of improved properties could distinguish between real property and personal property to depreciate component costs over varying useful lives. Basically, instead of depreciating an entire commercial property over 39 years, or residential roperty (single-family rentals or multifamily) over 27.5 years, certain components are correctly identified as depreciating in much less time. For about 135 items, useful life periods can be 5, 7 or 15 years. This is known as cost segregation.

The result of increasing depreciation is lower taxable income (which would have been taxed at 35%) and more income taxed at the capital gains rate (15%) when the property is sold. Furthermore, it works for any type of improved property.

Until recently, primarily large accounting firms or engineering firms implemented cost segregation studies, addressing large and newly built properties and sometimes outsourcing the analysis.

Prices for those analytical reports, usually in the $10,000 to $40,000 range, were out of reach for owners of small properties, especially those holding less-than-new assets. Unfortunately, those owners representing the largest segment of real estate investors in the country were mostly overlooked by previous providers of cost segregation services.

Now a revolutionary paradigm shift is opening the door to very significant savings for owners of small properties. Much of the change is based upon introducing the efficiencies of highly knowledgeable real estate appraisers who often apply industry-accepted cost estimation techniques before determining remaining asset life. By not “over-engineering” the staffing or production process, professional fees are lower. Yet, results can usually meet or exceed those of far more expensive reports. This approach has been successfully field-tested by IRS auditors.

Changes that appraisers are introducing to cost segregation analysis and reporting are addressing: 1) the size of the property being analyzed, 2) the age of the property, and 3) an affordable price point. O’Connor & Associates, a nationwide real estate service firm, is taking advantage of such techniques to effect these beneficial changes:

Income producing properties worth as little as $500,000 can achieve a 3:1 payback ratio of tax savings over the modest price of a cost segregation report. If owned for 3 or more years, the typical payback ratio is 10:1.

In late 2005, O’Connor’s pipeline of cost segregation work was up more than 100%. As owners are preparing for 2005 federal tax filings, many are tapping into this opportunity to lower their federal taxes. Even general partners who are not paying federal income taxes should use this depreciation method since K-1s will reflect lower taxable income to benefit their limited partners.

March 1, 2016

Bad Credit Auto Refinance Still Yields Tons of Savings

Filed under: Loan — Tags: , , , , , , , — admin @ 12:47 pm

If you have bad credit, it’s understandable to think that not a single company is willing to refinance your auto loans. This may be true for some people, but for a lot of people, getting a bad credit auto refinance deal is totally possible. As business processes become more and more “webanized,” it’s getting increasingly easier for customers of all credit histories to find lenders that are willing and able to refinance loans at competitive terms, even sub prime terms. In addition, a number of companies that specialize in bad credit auto refinancing are springing up left and right. So, don’t fret. Filling out a few quick online applications can end up saving you tons of money.
Why are companies willing to refinance a customer with bad credit? Because bad credit auto refinance can be extremely profitable, even when there is a drastic cut in the interest rates. Let’s take a look at a typical scenario. About one year ago, Mary needed a car badly. During that time in her life, her credit report had more than a few blemishes (okay, it was really bad). So, she walks into Friendly Joe’s ‘We’ll Finance Everyone’ Car Lot. And just like the advertisements said, she was able to drive away with a car that very day, no problem! The salespeople were extremely friendly and helped her get financing for her new wheels, at 21% interest for six years.
This is a ridiculous amount of interest to be paying, but Mary is happy because she has a car to help her get to work and school, and around to do important errands. Plus, the terms of the financing got her a manageable monthly payment of just under $250.00 ($10,000 loan). Friendly Joe helped her when “nobody” would. Mary may or may have not known that her $10,000 car would end up costing her around $18,000 by the time she pays it off. But one thing is for sure – Friendly Joe is making an $8,000 profit off Mary.
Now, fast forward to the present…..

January 30, 2016

Consolidating Credit Card Debt For Substantial Savings

Filed under: Credit — Tags: , , , , , , , — admin @ 12:46 pm

Consolidating credit card debt can help you cut back on your monthly bills.

It doesn’t take long for credit card debt to spiral out of control. Being out of work for a short period of time, medical expenses, and many other things can cause our debt to feel uncontrollable. Fortunately there are companies out there that are in business simply to help those that need it.

Hector Milla Editor of the “Credit Card Debt Free” website — http://www.CreditCardDebtFree.org — pointed out;

“…Debt consolidation works by taking your financed debt and lumping it all together. The consolidation company will work with your creditors to reduce the amount you owe. In most cases they are able to reduce the amount of the interest owed, and many times they can negotiate a payoff amount. Once the consolidation company is able to iron all of this out, they will total up the amount of your outstanding debt at the new numbers. Then they pay the debt off, and have you make a payment directly to the consolidation company. In most cases, consolidating your debts is essentially paying off all your outstanding debt and taking a new loan. Not all companies work this way, but the vast majority of them do…”

In negotiating a payoff, your monthly bills can be cut drastically. Some people have reported saving as much as 60% a month in their expenses by doing this. It will also help save your credit score from decreasing anymore. If you are facing increasing credit card bills, increased interest rates, and there seems to be no way out, consolidation may be the best answer for you.

On top of helping to cut your expenses back, many consolidation companies also offer credit counseling. This is a great option to help those who have gotten in over their heads avoid doing so again. It’s important to stick with a plan. Going at this with no help can be hard. Credit counseling services in conjunction with debt consolidation can be a great way to fix a problem, and prevent it from happening again.

“…Many people face tough times. Seeking help doesn’t make someone weak. In fact, it’s the opposite. Knowing when to ask for help can be the strongest thing to do. If you are facing a financial crisis like so many people do, seeking a consolidation company can help save you from further turmoil. It’s a simple process, and can give you the stability you need to get back on track…” added H. Milla.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.CreditCardDebtFree.org

February 24, 2015

2009 Stimulus Bill Has Some Tax Savings For Nearly Everyone

Filed under: Tax — Tags: , , , , , , , , — admin @ 12:46 am

The almost $790 billion American Recovery and Reinvestment Act signed into law will provide some benefits to almost 95 percent of workers, but most provisions won\’t happen automatically.

The Recovery Act gives taxpayers money to spend, incentives to spend it, and choices to spend it on. There are provisions that pay you now and some that pay you later. But for most us, this isn\’t a check-is-in-the-mail plan.  All of us will need to be informed and take action in order to benefit from the Stimulus bill. Taxpayers will need to have guidance to maximize the benefit.

The Saunders Learning Group recommends taxpayers take note of five areas where you may benefit:

Nearly everyone wants to know what the Recovery Act will do for you in terms of direct income, credits and deductions that you can benefit from.  Saunders Learning Group recommends consulting with a tax professional to help break down the changes and what they may mean to each individual.

Put money in your pocket now

The bill includes provisions that immediately puts money into wallets of all sorts of people including employees workers, the unemployed, and retirees. For both 2009 and 2010, the Making Work Pay tax cut means up to $400 for individuals and $800 for couples through a reduction in income tax withholding; in other words, bigger paychecks.  While week to week this is not a big change, it does help stretch your dollars. Eligible workers may need to work with their employers to ensure any adjusted income tax withholding is appropriate for their situation.

For example, if you transferred to the new reduced withholding amounts, you may actually owe more taxes when you file your 2009 and 2010 returns.  You will most likely want to sit down with a tax professional to work out how your tax situation is affected by these changes.  Most accountants, CPAs, or tax professional will provide a free assessment as part of their annual services, or any fee should be modest, so take advantage of the new provisions by reviewing your situation with your tax preparer or accountant.

For eligible self-employed taxpayers, you can adjust your quarterly estimated payments. For taxpayers who do not receive the full amount this year, you will receive the remaining as a credit on next year\’s tax return. Social Security and SSI recipients, retired and disabled veterans, and railroad retirees will get a one-time payment of $250. The Social Security Administration and Veterans Administration will provide the information about who qualifies for this payment; eligible individuals won\’t have to do anything. Individuals on a federal or state retirement program who don\’t receive Social Security benefits can claim a $250 credit when you file your 2009 tax returns.

If you qualify for both the Making Work Pay Credit and the $250 payment, you can\’t get the full amount of both benefits.  In these cases, the Making Work Pay Credit will be reduced by $250. For all the federal retirees who are used to double dipping that is not going to occur with this bill.

If You are Unemployed

If you are unemployed you can receive many new benefits.  Just remember, in most cases, these benefits are included in your taxable income.  Many will receive a $25 weekly boost to your unemployment check. In addition, the first $2,400 in benefits are exempt from federal tax in 2009. Eligible unemployed workers paying for COBRA will benefit from a 65 percent federal subsidy for your monthly insurance premiums.

Helping more of those who have less

This act also expands the Child Tax Credit, allowing families to start qualifying for a credit with every dollar earned over $3,000. For taxpayers, this change translates into a refundable credit of up to $1,000 for each qualifying child under 17. Refundable credits give taxpayers a real boost because if the person has no tax liability, the credit is issued in the form of a refund.

If you qualify for the Earned Income Credit (EIC), you will see increased benefits here too. The Credit for families now covers three or more children. Previously, EIC benefits were capped at two children.

Making homeownership more affordable

The Stimulus act also provides a new $8,000 tax credit for first time homebuyers. If you live in the house for at least three years, you will not have to repay the credit, should you move after that time period. To qualify, you must purchase a home between January 1, 2009, through November 30, 2009. Taxpayers who have purchase a home in 2009 can actually take advantage of this credit on their 2008 return. For those who have already filed, filing an amendment is the best way to capture this full credit on their 2008 tax return.  Consult your tax advisor or accountant.  The Stimulus plan also includes tax credits for energy-efficient improvements such as replacing qualified new furnaces, windows, and doors to existing homes. The credit applies to 2009 and 2010 tax returns, with a lifetime cap of $1,500.

Increasing access to higher education

More Americans will qualify for the American Opportunity Tax Credit, to get a new, partly refundable $2,500 tax credit for college tuition in 2009 and 2010. By making the credit partially refundable, nearly 4 million low-income students now can qualify for the credit. This is a better alternative for taxpayers than the two existing higher education credits.

A new provision expands which expenses can be included in the popular 529 college savings plans. If you are starting to spend for college under this plan, you can now include computer and computer technology costs as qualified expenses in 2009 and 2010. Previously, eligible expenses included only tuition, room and board, and books, supplies and equipment that were required for attendance at the school.

Go Green

The package allows taxpayers to deduct the state and local sales and excise taxes paid on the purchase of new cars, light trucks, recreational vehicles and motorcycles. The vehicles must be purchased between the enactment date of the Act through the end of this year.

The Act also provides a tax credit of up to $7,500 for families who purchase plug-in hybrid vehicles purchased after 2009 or plug-in conversion after date of enactment and before 2012. Even if you don\’t itemize your tax return, you will be able to benefit from this.  You will find a tax credit line for this on your 1040 tax form.  Again it is always best to consult a tax preparer, accountant or CPA.

While this act also provides for several other spending provisions, the individual tax savings available will benefit almost all US taxpayers, making it more important than ever to review your tax situation and take advantage of the benefits of the Stimulus recovery provisions.

 

February 24, 2014

Income Tax Tips: Reduce Tax With More Savings

A tax charged on the financial income of persons, corporations, or other legal entities is known as income tax. Nowadays, various income tax systems exist in the financial market with varying degrees of tax incidence. The income taxation can be categorized under progressive, proportional or regressive. Individual income tax is charged on the total income of the individual (with some deductions permitted), while corporate income tax is on the net income.Income tax time or financial closing dates are hectic and stressful time of the year. As a matter of fact, you have to make sure of all your receipts and money matter concerns in a proper order. This helps you to know about your expenses and savings which you have made in the previous financial year. Moreover, it assists you to save tax in next year by some modifications. With the help of valuable income tax tips you can reduce that you owe at tax time. Importantly, the amount you pay as income tax makes a big difference!Some important income tax tips are as follows:Firstly, one must make use of tax credits, as tax credits are better than tax deductions. The tax credits usually lower the amount of money one owes to the IRS. For instance, if your child is studying in college then you can easily claim for the education tax credit. As a matter of fact, you can open education savings account.Secondly, one can itemize his or her deductions. If one has a home office or contributed money to charity then he or she can itemize his or her tax return rather than taking the standard deduction. No doubt, this entire process is time-consuming, but it’s worth the effort as one would be paying less tax at the end of financial year.Thirdly and lastly, one can use his or her status to income tax advantage. For instance, if you’re married then you can choose to file income tax account jointly or separately. But, if one file as his or her status as the head of family then he or she will get a larger standard deduction. As a matter of fact, filing of status determines tax exemptions. At last one must review his or her overall tax situation and find-out the best ways to reduce tax and organize financial documents.

June 18, 2013

Tax Relief Calculator- Related Guidepost For Savings In Taxes

Filed under: Tax — Tags: , , , , , — admin @ 12:47 am

If you are searching for information related to tax relief calculator or any other such as tax relief for a low income tax calculating, New Hampshire real estate agent, dividend tax or small business tax relief act of 2008 you have come to the right article. This piece will provide you with not just general tax relief calculator information but also specific and helpful information. Enjoy it.
Tax relief is more popularly recognized as an offer in compromise, for a good reason. In light of the general public opinion of the IRS as mean, greedy fiends who will un-conscientiously turn you out into the streets, tax relief somewhat equalizes their image, showing that people who work for the IRS are human, too.
Tax relief is a reduction, deferment or elimination of taxes granted to a taxpayer by the state or federal government under certain circumstances; or, for expenses made by the taxpayer. For instance, the interest charged on educational loans may be deducted from the total tax payable in some instances. A tax deferment due to disasters or calamities, such as those granted the victims of Hurricane Katrina in 2005, can, also, be granted. It may also be exemptions granted to be low- or middle-income families, which means some amount is deducted from the total taxable amount, making the tax smaller.
Tax-relief checks assumed prominence recently with the passing of the Economic Growth and Tax Relief Reconciliation Act of 2001, arguably the first major tax-relief program in the nation in the last two decades. The intention of the legislation is to reduce the burden on taxpayers by disbursing in advance tax-relief checks. The U.S. Treasury mailed checks for up to 300 for singles or 600 for couples in the summer of 2001, and the process is expected to be phased in over the coming years. Significantly, these tax-relief checks heralded the switch from the old 15 percent tax rate to the new 10 percent tax bracket. The intention here was to accord the highest priority to be low- and moderate-income families by timely disbursal of the tax-relief checks based on the income tax burden.
Many people forget that they can get more information about any subject matter, be it taxes relief calculator information or any other on any of the major search engines like Google. If you need more information about tax relief calculator, go to Google and be more informed.
This specific tax credit is known as the “Alternate Motor Vehicle Credit”. It applies to vehicles placed into service on or after January, 2006. There are many hybrid vehicles currently available that qualify for this tax relief. Vehicle owners may claim the credit on their 2007 tax return, if they placed such a vehicle into service in 2007. Since March 2007, forty different hybrid models are eligible for the “Alternate Motor Vehicle Credit”.
Normally, tax relief works through a process where tax authorities review the ability of a taxpayer to pay taxes based on information regarding the person’s income and assets. A tax relief is granted if it’s found that the recovery of a certain tax is unreasonable because asset values have significantly decreased. However, tax authorities grant a tax relief only if the taxpayer’s request for relief is based on a valid reason as defined under law. Tax relief is also granted under special circumstances. In the case of taxes on inheritance and gifts, a relief can be granted if it’s checked that the value of the assets received has significantly reduced.
Although tax relief sounds like a blessing, particularly it is only directed towards senior citizens, unfortunate families who were involved in devastating accidents and natural calamities, and taxpayers from the low-income brackets. It would seem that if you do not qualify for any of these groups, you would be unable to find any kind of tax relief, but this is not the case.
It was intriguing to find that many people, oblivious of their background, found this article related to tax relief calculator and other debt law, tax relief income tax, and even property tax relief programs helpful and information rich.

June 15, 2013

Canadian Income Tax- Free Related Resource for Tax Savings

Filed under: Tax — Tags: , , , , , — admin @ 12:48 am

It’s difficult to provide accurate Canadian income tax information, but we have gone through the rigor of putting together as many Canadian income taxes related information as possible. Even if you are searching for information somehow related to state tax consulting, tax extensions, partnership income tax return or federal income tax forms online this article should assist a great deal. When you owe an income tax to the federal government or the state government, they are aware that the amount you owe may be over the amount you have access to at this moment. They prepare for this eventuality by allowing tax payers to file for an extension to pay their debt. You can arrange for a payment plan to be in effect for the total amount. Taxes of any type and form always burden you. Your income, off and on, is half eaten by the taxes you pay. These taxes can be federal taxes, state taxes, local income taxes, payroll taxes, which include Social Security and Medicare, sales tax, excise taxes and property taxes. However, if you are intelligent enough, you can apply tax-planning tricks that would eventually enhance your income. Given below are the effective steps for reducing your tax burden. All states also have their own tax system. Typically there is a tax on real estate, and there may be added income taxes, sales taxes, and excise taxes. Oil and mineral producing states often have a severance tax, which is similar to an excise tax in that tax is paid on products produced, rather than on sales. Taxes on hotel rooms are common and politically popular because the taxpayers usually do not vote in the jurisdiction levying the tax. If as related to the Canadian income tax as this article is, and it still doesn’t answer all your needs, then don’t forget that you can conduct more searches on any of the major search engines like Google to get more helpful Canadian income tax information. For Senior Citizens saves those who cannot pay the same taxes as compared with before retiring due to the lower income brought about by retirement. However, with intelligent investing, one can save a lot that otherwise goes as a wealth tax. Nevertheless, that requires careful thought and advanced planning. In this case a tax professional could assist one in this regard. If this is not the case, and you’re not classified as insolvent at the time of any settlement of debt, then obviously you may owe at least something to the IRS. If this is the case then it’s important to speak with a tax professional as the April 15 tax deadline nears so that you may get advice regarding your particular situation. If you’re not quite sure where you stand regarding the insolvency rule take a look at IRS Publication 908 for extra information. A lot of well-meaning people searching for the Canadian income tax also searched online for an individual income tax returns 2008, state income tax law, and even deadlines for filing federal income taxes.

September 15, 2012

An Offset Mortgage Allows your Savings to Work for you

Filed under: Mortgage — Tags: , , , , , , — admin @ 12:47 pm


An offset mortgage allows your savings to work much harder for you than if they were just sitting in an ordinary savings account.

An offset mortgage means borrowers only pay interest on their net loan amount – minus any savings they have in the same or linked account. Monthly mortgage repayments are calculated on the full debt, before offsetting is taken into account, so borrowers overpay their debt each month. Consequently, their mortgage debt is reduced much faster than with a conventional mortgage. Two examples are:

– A borrower with a £100,000 mortgage paying offset tracker loan rate of 5.24% would save more than £39,000 interest over the life of the mortgage by offsetting £20,000 of savings. The borrower would also pay off the mortgage five years early, based on a 25-year mortgage.

– A borrower with a £150,000 mortgage would save more than £60,000 interest over the life of the mortgage by offsetting £25,000 of savings. If the borrower continues to make mortgage repayments based on the full loan, he would pay off the mortgage five years and three months early, based on a 25-year mortgage.

Savings and income can be drawn on as needed, or built up to cut future repayments, and borrowers do not pay tax on the interest earnt from their savings when it is offset against a mortgage.

According to one mortgage lender, one in four households would benefit from an offset mortgage. The Council of Mortgage Lenders said the number of offset borrowers jumped 50% last year to 170,000, which was worth £29.3bn, and represented 7% of new lending. However, many households looking for a new mortgage do not realise they would be better off with an offset mortgage.

An offset mortgage tends to be the best option for borrowers with savings worth at least 8% – 10% of their mortgage if they are a higher rate taxpayer, for example, a higher rate taxpayer would need at least £10,000 in savings to offset against a £100,000 mortgage. A basic rate taxpayer would need at least £20,000 in savings to offset against a £100,000 mortgage. To match the savings made by offsetting, a higher-rate taxpayer would approximately need to earn 12% in a deposit account or 9% for a basic-rate taxpayer. An offset mortgage can also be suitable for people who are paid large bonuses or large amounts of commission on an irregular basis.

The Council of Mortgage Lenders said there are 250 offset products available. Three examples are:

– A cash Isa that can be set against the mortgage for tax-free savings

– Up to six current accounts can be used to offset against the mortgage – this allows family members to add their finances to the accounts, so it can be offset against the mortgage.

– Family offsets, which enable parents to help their children get on the property ladder. Parents can use their savings to be offset against the mortgage, which will bring down their children’s monthly repayments, and they still have access to their savings if they need it.

Offset loans are flexible. Without penalty, borrowers can pay off capital, make underpayments, and take payment holidays. Because an offset mortgage is flexible, the loans have a higher rate than traditional deals. However, the rates on an offset mortgage have fallen in recent years due to increased competition and many borrowers believe it is worth paying a premium rate because of the benefits gained with an offset mortgage.

An offset mortgage has grown in popularity for borrowers because offsetting is a great way to reduce the term of the mortgage, thus saving thousands of pounds on mortgage repayments, and still allowing access to savings for emergencies.

Simon Mellor recommends you visit www.offsetmortgagecentre.co.uk/offset-mortgage.html for more information on offset mortgage rates.

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