Most people buying a new home will need to borrow money from a lending institution to pay for the full cost of the house. These loans are referred to as mortgages, and like every other type of loan, they have a cost associated with them known as an interest rate. In mortgage lending, the interest rate is simply called the mortgage rate. The mortgage rate is a small percentage of the loan that you must pay every month to continue living in your home.

Interest rates of every kind, including the mortgage rate, measure the underlying risk that the loan may not be paid back. Lending institutions charge a higher rate when they perceive a higher risk of the loan not being paid back. Alternatively, they charge a lower interest rate when they perceive a lower risk of the loan not being paid back. There are various reasons that lending institutions perceive higher or lower risk when determining what your mortgage rate should be.

#1. Credit Score and Credit Report

One of the most basic pieces of information that almost all lenders use is your credit score and credit report. Before you go in to get a mortgage, get a copy of your credit report to make sure that it’s accurate. If there are any errors that will negatively affect your credit score, get them removed from your credit report as soon as possible. Your credit report provides the lender with detailed information on the level of risk they are taking by lending you money. Your payment history, length of credit history, number of credit accounts, derogatory marks, and other information will help them determine what mortgage rate to charge you. If you plan on buying a house in the near future, monitor your credit report closely and do everything in your power to raise your credit score. The Fair Credit Reporting Act (FCRA) requires each of the three nationwide credit reporting companies (Equifax, Experian, and TransUnion) to provide you with a copy of your credit report, at no charge, once every 12 months. You can request your free copy at annualcreditreport.com.

#2. Loan Term

The loan term is how long it will take you to pay your mortgage back. Shorter terms usually have lower mortgage rates. However, shorter loan terms also have higher monthly payments. The lending institution is taking on less risk because you will be paying your mortgage back much quicker. Longer loan terms have higher mortgage rates because it increases the chances that the loan may not be paid back. More unfortunate circumstances may occur over a longer period of time that may prevent you from paying your mortgage back.

#3. Down Payment and Home Price

A larger down payment means a lower mortgage rate because lenders perceive you as less risky when you have a higher stake in the property. The standard down payment is typically around 20% of the home value. If you can afford more than 20%, you should consider paying more. It can save you money in the long-run because less interest will accrue over time. You will also build equity in your home much faster because it will take you less time to pay off the total amount of the loan. Your home price will also be a significant factor in determining your mortgage rate. A more expensive home will come with a higher mortgage rate because it will require more money to fully pay off the loan. Get a good sense of your price range to determine what mortgage rate could be associated with the price level of your new home.

#4. Property Type

Traditional single family homes get the lowest mortgage rates because they have lower historical default rates. On the other hand, multi-family homes, condos, co-ops, and mixed-use developments have higher historical default rates, and therefore higher mortgage rates associated with them. Housing used for a vacation home or a rental also has a higher mortgage rate due to higher default rates.

#5. Location

Mortgage lenders have different pricing depending on what location you live in. If you are planning on moving to a different location, especially another state, check the lenders rates in that specific area. Also, larger lenders often times don't service rural areas. If you are moving to a more remote rural area, make sure and find a lender that will do business with you.

#6. Shopping

Sometimes your ability to get a lower rate depends on the time you spend shopping around. There are most likely multiple mortgage lenders in your area and you should take the time to get a quote from each one. These are competing institutions that will often have different prices for mortgages. Taking the time to get a quote from each one could save you thousands of dollars in the long-run.

#7. Fixed vs Adjustable Rate Mortgage (ARM)

Fixed Rate Mortgages have a mortgage rate that stays constant throughout the life of the mortgage and is based on the factors described above. Adjustable Rate Mortgages are based on the factors described above but the mortgage rate will also fluctuate after a given amount of time. Usually ARMs start out with a lower mortgage rate than a Fixed Rate Mortgage because you are potentially taking on more risk in the future. When the ARMs start to adjust, they adjust based on a specific market, often times the US Treasury market. Once the adjustment period starts, your new mortgage rate will be the market rate plus some margin, maybe 1% or 2%. ARMs can be risky for the borrower, as interest rates can rise significantly over the life of a mortgage. Fixed Rates can be risky for the bank, since it allows the consumer to lock in an amount that may become well below the market rate.

#8. Things That Are Out of Your Control

Interest rates fluctuate significantly over time, driven primarily by macroeconomic factors such as inflation and the overall strength of the economy. Current interest rates are near historic lows, but nobody can say for certain how long that will last. As with any investment, there is always an element of luck and timing.

When most people are deciding whether or not to tie the knot, taxes usually aren’t the first thing on their mind. They should be though. In fact, taxes are one of the few tangible benefits of marriage, or costs, depending on the situation.

When Is It A Benefit?

Tax laws were written to raise money for the government in such a way that the burden would be spread ‘fairly’ among everyone. What exactly constitutes fairness has been, and will continue to be for the foreseeable future, a topic for debate. What most people can agree on is that those that have more disposable income can, and should, pay more in taxes. When two people get married, their incomes are combined, and so are their expenses. Married couples are taxed jointly on their combined earnings.

In a traditional family with one primary breadwinner, marriage is great for taxes. A significant income is combined with the other person’s little or no income to get roughly the original income. However, the tax brackets are much higher for 2 people. In fact, at the lower and mid range level, they’re actually doubled. For instance, a single filer pays 25% of taxable income over $37,650 (in 2016) to Uncle Sam. A married couple doesn’t hit the 25% threshold until $75,300 ($37,650 x 2).

In addition to the tax bracket benefits, couples can also combine their deductions. For instance, the standard deduction in 2016, a deduction that anyone can take in lieu of itemizing their deductions, is $6,300 for individuals and $12,600 for couples.

When Does It Not Matter?

If two people earn the same low or moderate incomes and they marry, they’ll end up paying roughly the same in taxes. Their taxable income doubled, their deductions were combined, their tax brackets doubled and they’re back to right where they started.

When Is Marriage A Cost?

Many people believe marriage can only benefit you come tax time, but that’s simply not true. Why is this the case? Because at higher brackets, the cut-offs don’t actually double. Uncle Sam knows that as a couple, your expenses don’t truly double (you probably both live in the same house, sleep in one bed, etc.), and he wants as much from you as he can get. The next bracket after 25%, which is 28%, starts at $91,150 for individuals and $151,900 (which is much less than $91,150 x 2 = $182,300) for married couples. That means if 2 people, each making $80,000 per year, marry, they’d be moving from a marginal tax rate 25%, to one of 28%. Of course, the 28% is a marginal rate and as such only applies to the amount above $151,900, so they’d end up paying an extra 3% on $8,100, or $243. The more both people earn, the higher the marriage ‘penalty’

Can’t The Rich Just File Separately?

It’s a common misconception that married filing separately is the same as being single. It’s not. Filing jointly is almost always the best option for married couples. Reasons for filing separately include wanting to protect yourself legally from a spouse that’s cheating on taxes, protecting your refund from back taxes or child support owed solely by your spouse, etc.

Social Security and Medicare Taxes for Married Couples

There are two federal taxes that marital status will not affect: Social Security and Medicare. Everybody has to pay a 6.2% tax on the first $113,700 they make regardless of marital status and a 1.45% Medicare tax (2.9% on self-employment income).

Social Security and Medicare Benefits for Married Couples

Here’s one of the biggest financial benefits of marriage. When your spouse (of 10 years or more) dies, you’re generally eligible for a survivor social security benefit. That means you can keep receiving up to their entire social security benefit, subject to certain restrictions. Calculating the actual amount of the survivor benefit can get a little tricky. It depends on many factors, such as the widow/widower’s age when he or she began receiving benefits, how much that person is receiving already from their own social security, etc. Divorced couples that have been married for more than 10 years may also be eligible for survivor benefits. Check out the Social Security Administration’s website (ssa.gov) for specific information.

The Estate Tax

Lastly, there’s no estate tax when assets pass between two married people. No matter how wealthy and individual is, he or she can leave 100% of his or her possessions to a spouse, and it’s all safe from Uncle Sam, at least until the spouse dies too.

Marriage is about a lot more than just taxes and financial benefits, but it’s only responsible to consider all the costs and benefits before deciding to make your relationship official. For some, having a marriage certificate may not be worth paying hundreds of thousands of dollars over their lifetimes in additional taxes. For most though, getting married sooner is financially better than later.

A Tax Break is an advantage allowed by the government in which you are able to pay less in overall taxes. The goal of any taxpayer should be to reduce the total amount they pay in taxes so that they can invest that money back into their own lives the best way they see fit. Tax Breaks are not always obvious, so we have put together a list of the top 8 that you might not know about but could save you money.

#1. Energy Efficient Home Improvements

Many people are now switching to more energy efficient appliances to try and help make a positive impact on the environment. The US government now offers tax credits to individuals who decide to clean up the environment by using energy efficient home appliances. You can get a tax credit of up to $500 by switching to more energy efficient stoves, heat pumps, central air conditioning, water boilers, fans, insulation, roofs, water heaters and many other household appliances. You can also get a tax credit, with no upper dollar limit, for geothermal heat pumps, small residential wind turbines and solar energy systems.

#2. Electric Vehicles

The federal government also rewards people who ditch fossil fuel vehicles for electric vehicles. You can now get a tax credit of up to $7,500 when you purchase an electric vehicle. Your taxable income must be at least $7,500 to receive the full tax credit. If you purchase a new electric vehicle and your taxable income only reaches $5,000, your tax credit will only be worth $5,000. Some states also have additional tax credits available on top of the federal tax credit. For example, Colorado offers an additional $6,000 tax credit for electric vehicle purchases. Imagine driving around in a brand new Tesla while saving thousands of dollars that you would have otherwise spent on a brand new gas powered car.

#3. Higher Education

Higher education is a great way to invest in yourself and earn Tax Breaks at the same time. Higher education Tax Breaks can come in the form of tax credits, tax deductions and tax free savings plans. If you are pursuing a college degree, you may be eligible for the Lifetime Learning Credit of up to $2,000 per year if your income does not exceed $55,000 per year ($110,000 per year for married couples). If you do not meet the eligibility requirements for the Lifetime Learning Credit, you may be eligible to receive a tax credit of up to $2,500 per year through the American Opportunity Tax Credit if your income does not exceed $80,000 per year ($160,000 per year for married couples). You can also take advantage of tax deductions for things like tuition, books, room and board, and traveling expenses, which can reduce the amount of your taxable income by up to $4,000. Finally, you may qualify for an education savings plan where you can make tax free contributions to help you save for college related expenses.

#4. Charitable Donations

Paying it forward is a great way to reduce your payments to the IRS. Donating to charity can give you huge Tax Breaks by reducing your taxable income by up to 50% in some cases. The IRS is very specific on the types of organizations you can donate to in order to receive these tax deductions. In most cases, it must be a United States organization. These organizations can be a community chest, corporation, trust, fund, foundation, church or other religious organization, war veterans' organization, nonprofit volunteer fire company, civil defense organization, domestic fraternal society or a nonprofit cemetery company. Deductions can also include things like the cost of ingredients for a dish you baked for a soup kitchen or traveling expenses related to charity work. Make sure to consider all expenses you incur while volunteering your time and services.

#5. Job Hunting Expenses

The job market is tough these days and job searches can go on for an extended period of time. If you are currently looking for work, you can rest a little easier knowing that you can also get tax deductions while you look. To deduct job hunting expenses, these expenses must be at least 2% of your gross annual income. These expenses include, but are not limited to, transportation expenses ($0.57 per mile driven plus parking fees and tolls), food and lodging expenses if your search takes you away from home, cab fares, employment agency fees, and the costs of printing resumes, business cards, and postage stamps.

#6. Medical Expenses

Healthcare costs continue to rise at high rates and they can be very burdensome for individuals and families. Fortunately, there are numerous tax deductions you can take for medical related expenses. These deductions are especially useful for medical emergencies that are not covered by your insurance. The IRS allows you to deduct all medical expenses that exceed 10% of your gross annual income. You can deduct costs associated with preventive care, treatment, surgeries, vision care and dental care. You can also deduct costs associated with prescription medications and devices such as glasses, contacts, dentures and hearing aids. You are not allowed to deduct costs that will be reimbursed by your insurance or employer.

#7. Savings

With interest rates near all-time lows, it has become increasingly difficult for low and average income people to put their money into a savings account and expect a decent return in the future. With the Saver’s Credit, it becomes much more profitable to save through the means of an IRA or 401(k). By saving through one of these accounts, you can earn a tax credit up to $1,000 per year. You can save for your future and get paid to do so. People who make $45,000 or less per year are eligible for this tax credit, which allows for a deductible of up to 50% for the first $2,000 you save through a retirement account. And, of course, 401(k)s and IRAs also have other tax advantages, most notably the ability to defer paying any tax until you withdraw from the account.

#8. Mortgage Interest

Owning a home can provide many Tax Breaks that you should be aware of. The biggest Tax Break for homeowners comes from deducting interest payments that you have made toward your mortgage. When you are in the early stages of home ownership, the bad news is that the majority of your mortgage payment will be in interest, not principal. The good news is that interest payments are 100% deductible up to $1 million. If you own multiple properties, you can deduct interest payments on those properties as well. Your second property does not have to be a house either. It can be a boat or an RV as long as it has cooking, sleeping and bathroom facilities. You should also be aware that you must spend at least 14 days at your second property, or more than 10% of the number of days you rent it out (whichever is longer) to be eligible for the deduction.