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Enjoy the tax advantages of a real estate loan -- in a consumer loan-- without the usual costs or hassles associated with a mortgage.
HOW IT WORKS - A Tax Advantage Loan offers the tax benefits of a mortgage without the hassles. This is because it is secured by personal property -- such as a vehicle or savings -- and by real property (your home). The security requirements for the loan must be satisfied entirely by the personal property financed. As a result, you do not have to obtain an appraisal, title search, nor additional insurance on your home. You gain the benefits of a real estate-backed loan without the costs and hassles.
TAX ADVANTAGES - Tax Advantage Loans are real estate-backed loans and we report the interest you paid on the loan to the IRS each year so that you can claim your deduction. Please consult your tax advisor or the IRS to determine exactly how much a Tax Advantage Loan will benefit you.
ACCEPTABLE SECURITY - You may purchase or refinance a car, truck, RV, boat or airplane – or borrow against your savings. In all cases, the value of the personal property must satisfy our collateral requirements entirely on its own.
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Applications
Gap Coverage
Extended Warranty / MBI
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HOW TO COMPUTE YOUR "AFTER TAX" INTEREST RATE - - Assuming the Tax Advantage Loan is deductible for State and Federal taxes, the following shows how you benefit:
If your marginal Federal and State tax rate is 25%, then 25% of the interest paid on the loan is tax deductible.
.75 (the non-deductible percentage of the APR) X 5.5 (the APR for this example) = 4.8%
4.8% would be the effective APR of the loan after you receive the tax benefit.
Replace 25% with your tax rate to see what your "after tax" rate would be.
REQUIREMENTS - Tax Advantage Loans are available only to homeowners. In addition to providing copies of your Deed of Trust, most recent property tax and mortgage statements, you will need to complete a closed-end note and disclosure, and sign disclosures, a deed of trust and rescission notice. You will also be responsible for recording and DMV fees, vehicle sales tax, etc. You should also know that defaulting on a real estate-backed loan could result in foreclosure.
IT’S EASY - You’ll be surprised at how easy it is to enjoy the benefits of a Tax Advantage Loan. Contact our office for more information. Financing includes tax, license, documentation fees, and extended warranty/MBI.
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