djtweed_IHB
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In yet another episode of "Real Idiots Of OC Home Buying".... OC Register
Ladera Ranch article in OCR
- Thread starter djtweed_IHB
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IrvineRenter_IHB
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I knew this article was in trouble when the first line was:
"Mortgage brokers and real estate agents know a good deal when they see it."
"Mortgage brokers and real estate agents know a good deal when they see it."
IrvineRenter_IHB
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"The Fishers say they owe more on the mortgage than their home is worth. Part of the reason the couple is now underwater on their home loan is because they wrapped about $230,000 in law school loans into the mortgage, pushing it to around $750,000."
Interesting twist. You cannot bankrupt out of a student loan, but if you wrap it into a home mortgage, you can walk away with no problem.
Interesting twist. You cannot bankrupt out of a student loan, but if you wrap it into a home mortgage, you can walk away with no problem.
Mcdonna1980_IHB
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IrvineRenter said:
I guess that law school really did pay off!
fumbling_IHB
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Student loans can become nightmares with no way out for people who unfortunately have to default. Companies that provide student loans can be among the most predatory of lenders.
Seehttp://www.cbsnews.com/stories/2006/05/05/60minutes/main1591583.shtml
(sorry I can seem to make the link active)
Seehttp://www.cbsnews.com/stories/2006/05/05/60minutes/main1591583.shtml
(sorry I can seem to make the link active)
awgee_IHB
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The Fishers say they owe more on the mortgage than their home is worth. Part of the reason the couple is now underwater on their home loan is because they wrapped about $230,000 in law school loans into the mortgage, pushing it to around $750,000.
Sheila said they did so in order to reap a greater tax benefit, since the interest amount on the home loan is a tax write-off.
By the article's description of the mortgage(s), not all of the $230,000 is deductible. If they used a home equity line of credit, only $100,000 of the amount of HELOC over the original purchase price is deductible, or in this example, $740,000 would be deductible. If they refinanced the first for the entire $740,000, only the amount of the original purchase price is deductible, or in this example, $640,000.
Sheila said they did so in order to reap a greater tax benefit, since the interest amount on the home loan is a tax write-off.
By the article's description of the mortgage(s), not all of the $230,000 is deductible. If they used a home equity line of credit, only $100,000 of the amount of HELOC over the original purchase price is deductible, or in this example, $740,000 would be deductible. If they refinanced the first for the entire $740,000, only the amount of the original purchase price is deductible, or in this example, $640,000.