French Onion Soup is essentially caramelised onion in soup form topped with cheesy bread. The French are genius!
Caramelising onions calls for patience, but it’s worth it. You’ll be rewarded with deeply golden, intensely sweet onions that forms an incredible flavour base for this French Onion Soup. For an effortless option, see how to caramelise onions in a slow cooker!
How Long to Keep Outdated Home Loan Papers?
Even as technology moves closer to a paperless society, some printed original documents must be kept, including home loan documents. When it comes to keeping home loan papers, employing the “better safe than sorry” philosophy may lead to piles of papers, especially if you own multiple properties or have refinanced several times. Knowing what to stash and what to trash will help cut through the clutter.
While you’re busy tossing papers into the bonfire, remember to keep your HUD-1 statement. This is an itemized list of all costs associated with the purchase of your current home and includes tax deductible items and costs that can be added to your cost bases when figuring capital gains tax when you sell.
Keep the Most Important Papers
Actual contract papers detailing your home purchase and original loan should be kept for the life of the loan. Other loan paperwork, such as refinancing agreements, should be kept for at least three years; some recommend keeping these as long as ten years. This type of paperwork could come in handy if monthly mortgage statements seem inaccurate or if there’s a sudden unexpected change in your monthly interest rate, for instance. Other paperwork, such as paid monthly mortgage loan fees, should only be kept as long as you feel necessary, such as several months, to ensure the payments were credited to your account.
Home loans usually have tax implications and the IRS provides explicit guidelines on what to keep. Individuals are required to produce records proving any income, deductions or credit claimed for at least three years from the date of a return. If you failed to file a tax return in any given year, there is no statue of limitations. In that case the IRS recommends you keep documents related to those records indefinitely. Keep records of any home improvements made as well, as these could come in handy for tax purposes and if you ever decide to sell the property.
The U.S. government recommends that you hang onto any deeds as long as you own the property, but if you’ve paid off your mortgage and the deed to your property has been recorded in land records, the documents can be tossed. That’s because most municipalities have copies of these documents available online. Before discarding these papers, make sure you have a document labeled “release” or “certificate of satisfaction.” You can verify this with the title company that handled your closing.
Better Safe Than Sorry
It’s important to figure out where to store your key records. For instance, online or cloud-based records can be hacked, and hard drives can fail. Keeping paper records in a locked fireproof cabinet or safe deposit box helps ensure papers stay secure. Just make sure you remember where you’ve stored the materials, and that you tell any other party named on your home loan where to find such documents.