Mortgage Broker

  

Categories: Mortgage

See: Mortgage.

A simple mortgage contract has two participants. There’s the person borrowing money to buy a house...and there’s the lender providing cash through the mortgage.

But like that trip to Paris you and your spouse never talk about, but each of you thinks about all the time, sometimes a third party gets involved. That third wheel here is called a mortgage broker.

A mortgage broker’s job really isn’t that titillating. Mostly they make introductions and fill out paperwork. They operate as intermediaries. The brokers don’t make the loans...they just hook up the parties involved. Think of them as the Match.com of the mortgage business.

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Finance: What is a Mortgage?345 Views

00:00

Finance allah shmoop shmoop What is a mortgage Well people

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a mortgage is just dead it's alone but one with

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special tax treatment For most people simply put Any interest

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you pay on a mortgage to buy a home is

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tax deductible Morty morton's inputs down a hundred thousand bucks

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to buy a home that costs four hundred big ones

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his mortgages three hundred grand at five percent interest per

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year So that's fifteen thousand dollars a year he pays

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to rent the money from the bank which he uses

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to buy his dream home with the loop de loop

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waterslide Morty earns one hundred grand a year and pays

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tax on his last fifteen thousand of earnings soas faras

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The irs is concerned since morty can deduct his fifteen

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thousand dollars in interest against his earnings he does not

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in fact earn taxable wages of one hundred grand annually

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Instead he earns taxable wages of eighty five thousand dollars

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a year Essentially with government is doing is sharing in

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some of the cost of renting the money Taub i'm

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ortiz home well why would the u s government be

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so charitable Well because home ownership has been integral part

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of the american dream since the u s of a

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i po'ed in seventeen seventy six easy access to mortgages

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and then home buying can be a hugely beneficial asset

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In the vast majority of cases homes create family stability

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a store of wealth and tax dollars for local schools

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in the form of real estate taxes So don't feel

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bad about splurging on that water slide there Morty Just 00:01:42.93 --> [endTime] remember you're doing it for the kids Hello

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