The Best and Worst States for Taxes

As if paying federal taxes is not bad enough, you also have to take care of those imposed by your state. If you don’t know anything about state taxes you may find yourself struggling to stay on top of things. Just as you owe money to the IRS every year, based on your income, your state expects the same. Along with this, you probably have to pay taxes to your municipality as well.

Of course, some state taxes are better than others. This means that some states tax at a lower rate which often time attracts people from other areas of the country. The IRS tax system is the same for everybody in the United States. States have the right to impose their own system.

Before we go any further, you should know that some states do not have any income tax. They include: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Requesting a Copy of Your Past Tax Return: Step-by-Step

If you are not living in a state with no income tax you should know what you are being charged. States with a flat rate individual income tax include: Colorado (4.63 percent), Illinois (3 percent), Indiana (3.4 percent), Massachusetts (5.3 percent), Michigan (4.35 percent), Pennsylvania (3.07 percent) and Utah (5 percent). These state taxes are among the lowest in the country.

At this time, Hawaii and Oregon are the two worst places to live when it comes to state taxes. They both impose a state tax rate of 11 percent. 

These are some of the best and worst states for taxes. If you are trying to avoid income tax, you should live in one of the nine states do not have this tax. Regardless of where you live, you should always keep in mind that you have to pay state taxes in addition to federal and local taxes.

How to Be Smart with a Second Mortgage

Do you need extra money, but have nothing in the back to draw on? In this case, you may want to consider a second mortgage. Before you do this you need to know the pros and cons of a second mortgage, how it will affect you now and in the future, and what you can do to ensure a successful transaction.

Generally speaking, a second mortgage is nothing more than another mortgage on your home. It acts as another loan secured against your property.

Why would anybody want to risk their home by taking out a second mortgage? There are many reasons why second mortgages have become so popular. For one, when you borrow against your home you can get a bigger loan.

There are many reasons for taking out a second mortgage with some of the most common being: to avoid private mortgage insurance, make home repairs, purchase another property (vacation home), and to create a home equity line of credit.

A second mortgage is not something you should jump into without thinking about the future ramifications. While there are many benefits to getting a second mortgage, you need to be smart about the decision you make.

The biggest potential drawback of a second mortgage is that you are risking your home if you get in a bind and are unable to pay back the loan. Additionally, you can expect to pay a higher interest rate on your second mortgage as compared to the original loan.

Options for Homeowners Facing Bank Foreclosures


Before taking out a second mortgage consider the pros and cons, as well as your financial situation. Will you be able to comfortably pay both mortgages, month after month?

If you have equity in your home a second mortgage is a consideration. Before you move forward make sure you are totally aware of the pros and cons of second mortgages, and how your finances will be affected.

First-Time Home Buyer: Choosing the Right Mortgage Product

As a first-time home buyer you are sure to be worried about every last detail. This is particularly true when it comes to choosing the right mortgage product. If you are not aware of the many types of mortgages, you should take a step back and learn more before you make a decision on which home to purchase.

Choosing the right mortgage product is based on many details. Above all else, you have to select the loan that you feel will suit you, your home, and your finances the best. Keep in mind that you will be paying on your mortgage for many years to come. So don’t choose something that is fine for now, but may put you in a bad position later.

A fixed rate mortgage is the safe bet. The most common options are 15 and 30 year loans. With these, you know that your rate will stay the same for the term that you choose. In turn, your payment will also stay the same, give or take a couple of dollars, as the years go by. Knowing that your payment will never change makes it much easier to budget for both the short and long term.

What about an adjustable rate mortgage? This is a product that sounds good on the surface, but is often times passed by for a more conventional fixed rate product. An adjustable rate mortgage is just what it sounds like: your rate adjusts, from time to time, based on several factors. This means that your payment will never stay the same for too long. Along with this, there is a good chance that it could jump high which could put you in a compromising position. The main benefit of an adjustable rate mortgage is that you can often times afford a bigger mortgage, due in large part to a lower initial rate. On the downside, your payments and interest can go up in the future. Are you prepared to deal with that risk?

First-time home buyers have to make a lot of decisions. What type of mortgage is best for you? If you want to learn more, get in touch with a few lenders and ask them about the products they offer. Soon enough you will have a better understanding of which mortgage product will suit you best as a first-time home buyer. As long as you are comfortable with this financial decision, you can move onto the other factors of buying a home for the first time.