Your first-time homebuyer benefits include opportunities to:
Build home equity – Unlike rent, the principal portion of every mortgage payment you make has the potential to grow your asset.
Gain potential tax benefits – Your mortgage interest and real estate property taxes are usually tax deductible when you file your income tax returns. (Consult a tax advisor regarding the deductibility of interest.)
Build your credit – Making on-time mortgage payments can help you create and keep up a strong credit history.
Take control – Rent increases, cancelled leases and other unexpected tenant hassles will be things of the past.
The potential financial and personal benefits that go along with buying your next home may include:
Gaining additional space. Perhaps you’ve outgrown your existing home and need more space for your family, hobbies, or your social life.
A more manageable space. If you want to downsize or want to simplify your life, you may be ready to consider a smaller home.
A quicker commute to a new job opportunity. Career changes may make it necessary to move to a new area and find a new home.
We offer different ways to find out how much you may be able to borrow.
Dreaming about a vacation home?
Plaza Loans is ready to help you through every stage of homeownership — as you plan to buy, when you purchase, and even after you own your vacation home.
If you’re dreaming about vacation homeownership near your favorite location, you’ve come to the right place for financing information and tips.
Having a place to stay near the beach, the lake, the mountains or your favorite resort area offers many potential rewards. When you buy a vacation home, we can help you understand the financial and personal benefits that go along with the purchase, including:
Rental opportunity. If your home is in a popular vacation spot, you may be able to rent it and earn additional income when you’re not using it.
Ongoing income and cash flow. If you choose to rent your vacation home, it could provide ongoing income to offset your expenses, and may provide tax benefits in the form of depreciation expense. Restrictions apply. (Consult your tax advisor regarding the deductibility of depreciation expense.)
Potential tax benefits. Mortgage and home equity interest payments and property taxes may offer the opportunity for tax advantages. (Consult your tax advisor regarding the deductibility of interest.)
Potential property appreciation. A vacation home may be a good long-term asset to hold as homes can increase in value.
How to get started…
Rental opportunity. If you purchase an investment property close to local businesses, a popular commuting area, or vacation spot, this may be attractive to tenants and could possibly create cash flow.
Ongoing income and cash flow. Your investment property can provide ongoing income to offset your expenses, and may provide tax benefits in the form of depreciation expense. Restrictions apply. Consult your tax advisor.
Potential tax benefits. Mortgage and home equity interest payments and property taxes may present the opportunity for tax advantages. Consult your tax advisor on the deductibility of interest.
Build your investment portfolio. You can add diversification to your portfolio by owning an investment property.
Your current home’s equity may be a useful asset to buy additional property. If you have sufficient equity in your current home, you may be able to purchase your investment property outright and avoid an additional first mortgage by getting a home equity loan or line of credit.
Keep in mind that by using the equity in your current home. The debt is associated with your primary home. Because investment properties carry a higher risk, you should consider this option carefully before making your decision.
Learn about your loan options. We’ll help you find a mortgage that meets your needs from our wide array of mortgage products.
Start an application. Online, over the phone, or in person, we’ll help you secure your home financing in a way that’s convenient for you
When interest rates drop, refinancing may be the right choice for your financial situation. Consider the following advantages of refinancing to a lower interest rate:
Increased cash flow
Your loan’s monthly payment typically decreases with a lower interest rate. With a lower payment, you can use the extra funds for retirement savings, paying other debts, saving money for college, or other purposes.
Increase Your Home Value
a few tips
Unless you use a home equity loan to refinance your existing first mortgage loan, the terms of your first mortgage loan will not change when you take out a home equity loan. Typical loan terms range from five to 30 years. Any existing home equity accounts, also known as second mortgage loans, must be paid off with the new home equity loan.
If you make home improvements with the specific intent of increasing the resale value of your property (as opposed to just making it more comfortable to live in), make sure the improvement will add the value you want.
Before deciding on a final home improvement loan amount, complete a cost breakdown that itemizes the estimated cost of your home improvement. Include the items you will need, such as building materials (lumber, concrete, etc.), labor and decorating (paint, tile, etc.), as well as a contingency amount for possible unplanned expenses.
A home equity account, such as a home improvement loan, can provide a tax-deductible way to improve your home and increase its value. Note, however, that you should always consult a tax advisor about the deductibility of interest.