Being Smart with Your Mortgage & TaxesThis Year

By Kathleen Reynolds

This was going to be the year you finally got a handle on your money. So, in the words of Dr. Phil, “How’s that working for you?”

For most households, “finance” isn’t just Wall Street jargon. It’s the day‑to‑day reality of budgeting, banking, insurance, investments, retirement, and even estate planning. To keep it grounded, let’s zoom in on two big pillars of family finance: mortgages and taxes.

For generations, buying a home has been seen as one of the most reliable paths to building wealth. Done thoughtfully, it can lead to long‑term appreciation, equity, and a greater sense of financial stability. Buying isn’t the right move for everyone, but if you’ve done your homework and homeownership is on your radar, the next question is: what should you look for in a mortgage company?

According to Forbes.com, “The advantage of homeownership is not just the property you own (or are mortgaging) but the financial mindset that helped you arrive there. In other words, you have to be financially responsible to own a home: you have to save for a down payment, qualify for a mortgage and budget for homeownership costs like taxes and insurance.”

So, what exactly does a mortgage company do—and how do you know you’ve found a good one?

Chris Salese is the branch manager for Del Sur Mortgage located in Napa County. “We help our clients finance real estate,” says Chris. “Whether they are purchasing it or already own it, our job is to help provide them with financing for their projects.”

For Chris and his team, it starts with listening.“We have patience and don’t give up. We offer solutions and provide options. While this might not sound unique (for mortgage companies) per se, it’s hard work.”

From there, the value of homeownership comes into focus. Owning a home offers long‑term stability and predictable housing costs. Unlike rent, which can rise with market shifts, a fixed‑rate mortgage allows homeowners to budget with confidence. Homeownership also builds equity over time. As property values appreciate, owners can benefit from that growth when they choose to sell, often turning a significant profit.

Chris also wants to clear up some of the myths that keep potential buyers on the sidelines. (Regardless of what you might hear) he says, “You do not need 20% for a downpayment on a home, credit inquiries are not the most impactful item on your credit report, and the FED Reserve does not directly impact home loan rates.”

The area where he urges absolute honesty is how you plan to use the property.

“Clients should absolutely not try to mislead their lender about how they plan to live in their home (or use their property) in an attempt to circumvent the system for a lower interest rate.”

When it comes to getting “mortgage‑ready,” Chris focuses on fundamentals.

“If you don’t yet have a mortgage, then first save as much as possible after you have suppressed as much of your existing debts,” says Chris. “Pay attention to your credit profiles. Not just the scores you might find, but the quality of your credit and what’s actually being reported all throughout it. If you don’t have ample reserves, then don’t try to pay more toward your mortgage each month until you do. Work with your employer to make sure you have the right deductions in place for each pay period. If you are self-employed, make sure you are consulting and adjusting with your tax preparer regularly, like quarterly, to avoid any end-of-year surprises.”

Of course, no investment is risk‑free. While real estate does carry risks—such as market volatility and ongoing maintenance expenses—the long‑term advantages of homeownership often outweigh those concerns. Appreciation, equity building, and greater financial stability make buying a home a compelling investment for many individuals and families. As you weigh the decision, it’s important to take an honest look at your finances and long‑term goals to determine whether homeownership aligns with your overall investment strategy.

Then there’s the other side of the financial equation: taxes.

Having a mortgage may come with tax advantages, but that’s just one piece of a much bigger picture. Although thinking about your income taxes may not be exciting, tax-advantaged saving and investing can help you get ahead. These strategies will help you reduce the amount you’ll owe in taxes each year and help you prepare for a healthy financial life and future at the same time.

Tax planning, says the pros, shouldn’t be something you dust off once a year.

Tax planning shouldn’t be an afterthought when the new year rolls around. You should stay organized throughout the year, keeping track of your income and deductions. You should also plan your monthly budget around a contribution to a retirement account and decide whether you want to save for your child’s college education in a 529 plan. You might also choose to make contributions to a health savings account if you have a high-deductible health plan.

In Napa, Ted Mihm, Enrolled Agent and owner of Ted’s Tax and Accounting Solutions, works with

clients on everything from basic returns to complex tax issues. He says his company provides a full range of tax services including tax preparation, representation, resolution and planning.

“I advise all my clients to educate themselves as much as possible,” says Ted, who has worked in tax and accounting for 25 years. “While you can rely on your financial and tax advisors, you will be largely better off having a good working knowledge and therefore an understanding of your own financial and tax situation.”

He also offers a cautionary note.“Be careful with your choice of tax or financial advisors. There are a lot of poorly educated and poorly trained individuals who do not know what they are doing. Look at their education and experience.”

When tax season approaches, Ted’s advice is simple: make it easier on yourself.

“I advise clients to make it easier and less stressful for themselves. Find a local tax advisor for all your tax needs. Do not procrastinate, that just makes it harder. Have a straightforward way of collecting documents and tax information throughout the year. For example, an accordion file that you place all tax relevant information in as it comes throughout the year, or an envelope system, one envelope for each month. Utilize the tax organizer your tax professional provides as a handy reminder of the issues you need to address at tax time. Make copies of all documents, retain one copy for yourself and one copy for your tax advisor.”

For the perennial question of how long to save records: “Keep everything for seven years.”

Ted also wants to dial down the fear factor around taxes.

“Taxes are not easy to understand and can feel overwhelming, but they are not rocket science. You can understand and deal effectively with your finance and tax situation. All you need is the one advisor that takes the time to help you and becomes your advocate.”

What doesn’t work, he says, is pretending the problem doesn’t exist.

“The biggest mistake I see is in delaying response and addressing tax issues. Time is usually not on your side and delay can make it substantially worse when there are tax issues. The easiest way to reduce your tax bite is by making sure the problem does not compound itself with penalties and interest.”

His advice if an IRS notice lands in your mailbox is direct.

“If you get a notice from the IRS and you don’t understand the problem, get help asap. Do not think it’s going to resolve itself on its own. That rarely happens.”

Whether you prefer to manage your finances solo or lean on professionals, the formula is the same: planning plus consistency. With a clear strategy and ongoing discipline, it’s possible not only to avoid financial hardship but also to build a brighter financial future.