MORTGAGE REFINANCING FOR THE ENTREPRENEURS

The self-employed may have trouble qualifying for a loan or mortgage refinance. It is a good idea that self employed should consider becoming owners or tap into their home equity.
• Fixed rates and short terms
Many self-employed people opt for a fixed-rate mortgage instead of an adjustable-rate loan for easier planning. They can choose a shorter term, which allows them to pay off the mortgage earlier.
• The documentation hassle
It’s difficult for the self-employed to qualify for a mortgage loan due to complicated document needs and tax returns, bank and investment account statements as they need your pay-off balance and details about your current mortgager.
• Tax deductions
The drawbacks of self-employed are paying twice as much Social Security and Medicare taxes as an employee of a company. This is the reason why the tax deductions that mortgages provide should be greatly valued. These write-offs can help to lessen any heavy tax burden.
But as is the case for the ambitious entrepreneur, many of these hurdles are worth overcoming.