Arrears in real estate refer to payments that are overdue or are scheduled to be made at the end of a specific period.
Form 1098 is a form that lenders are required by the Internal Revenue Service to send to mortgage borrowers, showing the amount of interest paid during the past year.
Itemized deductions are specific expenses that can be deducted from taxable income to reduce the amount of federal income tax owed. They include costs such as mortgage interest, property taxes, and certain types of losses.
A Mortgage Credit Certificate (MCC) enables a borrower to claim a portion of the mortgage interest paid as a credit against federal income tax, helping first-time home buyers by reducing their overall tax liability.
Prepaid interest refers to interest that is paid in advance of the time it is earned. It's typically associated with mortgage loans where borrowers pay interest upfront to reduce future interest payments.
A situation in real estate where financial benefits from ownership accrue at a lower rate than the mortgage interest rate, leading to negative financial implications for the property owner.
A Working Mortgage is a mortgage loan where payments are made more frequently than once a month, usually timed to align with the borrower's pay period. This payment structure typically accelerates the amortization of the loan, resulting in less interest paid over the life of the loan.
