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Did you know that the government could help pay your house payment each month? 

Here's how it works.  The taxes and interest you pay on your home are tax deductible.  If you pay $1,000 in interest and $200 in real estate taxes each month, because of the deductibility, the first $1,200 of your pay check is now tax free. 

If you are in the 25% tax bracket that means you pay $300 less per month in taxes than your friend who rents his or her home!

Now, if you are like most home owners, you get a tax refund at the end of the year as a lump sum reimbursement from the IRS.  This is paid to you after you have filed your taxes which are usually due before April 15th. 

Now here's the tip. Instead of getting back this lump sum, the smart move would be to have fewer taxes taken out of your paycheck each month.  For instance, let's say your average tax refund is around $3,000 each year.  First divide that number by 12 months, which would be $250.00. 

Now instead of getting that $3000 back as a lump sum, you decrease your deductions so that $250.00 less is taken out of your paycheck each month. 

To do this, go to the human resources department at work and re-file a W-4 form.  On the W-4 form, increase the number of exemptions you currently have so that you keep $250 more of your paycheck each month.  Then use that $250 to help make your house payment. You may have to experiment with the number of exemptions to reach this $250. 

Also keep in mind that your $3000 "refund" is actually a tax free loan you have given the government.  They use your money all year and don't pay you a dime of interest!

And remember, this is just an example.  Your CPA or tax advisor can assist you with a more precise number that fits your particular situation. 

If you need a recommendation for a good tax professional, give me a call. 
This is just one of the many strategies I cover during a FREE mortgage review session.  Call me or just reply back to this email right now to schedule yours and find out what you have been missing!