TAXES AND DEDUCTIONS
NOTE: Embrace is not a tax advisor. Please consult a professional for further information regarding the deductability of interest and charges.
How do I get my mortgage interest statement?
Most lenders send these forms via snail mail, though you may be able to download yours online, too. Check with your servicer to see if they offer an online dashboard or customer center you can utilize. If your loan is serviced by Rushmore, visit this link to learn more about how to access your 1098.
How much of my property taxes can I write off?
I renovated my home last year. Are there any tax write-offs I can take advantage of?
Be sure to speak with a tax professional before making any decisions.
Can I write off interest on second homes?
The IRS does not allow you to write off interest on third homes or beyond. If you own an investment property, you’ll likely deduct its interest and other costs as business expenses. Be sure to speak with a tax professional before making any decisions.
What types of tax deductions can homeowners take advantage of?
Homeowners enjoy a slew of tax write-offs that other Americans just don’t have access to. You can deduct the interest you paid on your mortgage, your property taxes, and much, much more. See this list for a full breakdown of potential write-offs.
The exact deductions you’ll be eligible for will depend on what activities you took part in last year. Please be sure to speak with a tax professional before making any decisions. See below for more detail:
If you bought a home…
If you just purchased your home last year, then you’ll want to check your closing statement. If you paid for points (listed under Section A of the loan costs section), you may be able to write the costs of these off. If you itemize your returns, you’ll also be eligible to deduct your private mortgage insurance costs and the interest you paid on your mortgage — both at closing and across the year — and your property taxes, too.
If you sold a home…
As long as you made less than $250,000 in profits on the transaction ($500,000 if you file jointly with your spouse) and you lived in the house at least two years, you’ll be exempt from paying capital gains taxes on your home sale. This could save you significantly on your tax liability.
Additionally, you’ll also be eligible for deductions for your interest, mortgage insurance, and property taxes before you sold the house (and on your new home, if you bought another after).
If you refinanced your mortgage…
Refinancing is much like purchasing a new home. If you paid for points or prepaid interest at closing, these can be deducted from your annual tax returns. You also may be able to write off things like mortgage insurance, property taxes, and interest paid across the year.
If you stayed in the same home..
If you neither bought, sold, or refinanced last year, but instead stayed in the same home as the year prior, you’re still eligible for some write-offs. Use this list to guide you.
Do I need to make my mortgage payment during this pandemic?
Who qualifies for assistance?
What type of assistance am I eligible for?
Who determines if I am eligible for assistance?
After a loan has closed, sometimes Embrace remains responsible for the Loan servicing, and sometimes the servicing responsibility is transferred to another.
If Embrace retained the servicing of your loan, then your loan would be serviced right now by Rushmore Mortgage Services on behalf of Embrace, and you should be making your monthly mortgage payments to Rushmore.
If the servicing of your loan was transferred, then you should contact the company to whom you are making your monthly mortgage payments for further information about your options for COVID relief.
What is the contact information for
Rushmore Mortgage Services:
Monday – Friday 8:00AM – 6:00PM CST
Can you refinance with a Conventional loan?
What is the difference between a cash-out refinance and a home equity line of credit (HELOC)?
With a cash-out refinance, you replace your current mortgage with a new mortgage to help with expenses such as tackling home improvements or paying off other debt. With a fixed-rate cash-out refinance, you know exactly what your rate will be and what you will pay each month.
The best option for you depends on your financial need and situation. Embrace does not offer HELOCs, but our mortgage specialists can help you decide.
What does it mean to refinance a mortgage?
When is the right time to refinance?
- You’d like to lower your interest rate or monthly mortgage payments
- You need cash, fast
- You’d like to consolidate debt
- You’re looking to shorten your payback term
- You want to switch from a variable-rate to a fixed-rate mortgage to create regular, predictable payments
- You’d like to get a variable-rate mortgage with better terms
What is the typical refinance process?
- Research the value of your home and check your credit scores.
- Gather all needed documents and apply for the refinance.
- After your loan is approved, the underwriting process begins—the time for careful review.
- Sign your papers and close your loan.
What types of bills can I consolidate by refinancing?
What kind of refinance loans do you offer?
What can I do with the money from a cash-out refinance?
What does it mean to be pre-qualified?
How does my credit score impact the rate I get on my mortgage loan?
How is my credit score calculated?
How can I improve my credit score?
• Get copies of your credit reports and stay on top of them
• Set up payment reminders and pay your bills on time
• Focus on reducing your debt
What is an underwriter looking for in a purchase loan application?
What happens at closing?
What costs are required at closing?
Why should I buy a home?
Is buying a home better than renting?
Is now the time to buy?
How much can I afford?
- Your debt-to-income ratio (your total monthly payments as a percentage of your gross monthly income)
- Cash you have available for a down payment and closing costs
- Your credit history
- The value of the home you’re buying
What is the loan-to-value (LTV) ratio? Why do I need to know that?
What is a home appraisal?
How do you qualify for a loan?
How long does the mortgage process take?
Do I need to find a home before I apply for a mortgage?
What’s an escrow account, and how does it work?
What credit score do I need to get approved?
Can you get a mortgage without a credit score?
What is the difference between Embrace, my local bank, and a broker?
How long has Embrace been in business?
Can I pay my mortgage online?
Where do I log in to see the status of my loan?
When did Embrace start using Rushmore as a sub-servicer?
Will my electronic payment authorization with RoundPoint be transferred to Rushmore?
Can I get a home equity line of credit (HELOC) with Embrace?
What does it mean to be pre-approved?
Am I eligible for MIP cancellation?
How do I eliminate or reduce my mortgage insurance payment?
How do interest rates affect my mortgage?
How are rates calculated?
What is mortgage insurance?
In this scenario, the lender is the beneficiary if you default on the mortgage loan for any reason.
How much money do I need to buy a home?
What does my mortgage payment include?
What's the best way to get started?
What is PMI and do I need it?
What are points?
What does it mean to "lock in" your rate?
Aren't the interest rate and the annual percent rate (APR) the same thing?
Can I take advantage of Embrace’s No Down Payment program if I have owned a home before?
What types of loans does Embrace offer?
What is a second mortgage with interest-only payments and balloon payment?
What are 203(k) loan requirements?
• The property must meet renovation loan requirements.
• An appraiser’s estimate of what the property value will be with completed improvements must support the mortgage amount.
• Down payment and closing cost requirements may vary depending on the loan type.
How do I get a Certificate of Eligibility?
What kind of renovations can be made?
Properties that are sold “as-is” often would not qualify for a standard FHA loan. 203(k) loans, however, are designed to improve, update, and modernize the home.
I have already obtained one VA loan. Can I get another one?
How can I obtain proof of military service?
Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don't own the property anymore. Can I still obtain a VA guaranteed home loan?
Is the surviving spouse of a deceased veteran eligible for the home loan benefit? What about the children of an eligible veteran?
What is a conventional loan?
What is an FHA insured loan?
What is the difference between fixed and variable rate mortgages?
What loans are available to Veterans and members of the military?
How do you know which mortgage loan is right for you?
With so many mortgage options out there, it can be hard to know how each would impact you in the long run. The most common mortgage loan types are:
- Adjustable-rate mortgage (ARM)
- Federal Housing Administration (FHA) loan
- Department of Veterans Affairs (VA) loan
- Fixed-rate conventional loan