Ownership Has its Benefits
If you or someone you know are still paying a landlord's mortgage instead of building equity of your own, see what you're missing. Check out some of the other financial benefits of being a homeowner.
Typical Tax Deductions for Homeowners
Mortgage interest – One of the biggest tax incentives to owning a home is that the interest you pay on your mortgage is tax-deductible, up to $1 million. This deduction applies to any kind of home, including a second home under certain conditions.
Real-estate taxes – As a homeowner, you can deduct the local property taxes you pay each year, too. This applies to both your principal home and any others you may own.
Points – If you (or even the seller) paid points to the lender to secure your mortgage, you may be able to deduct those points on your taxes.
New and Temporary Deductions
$8,000 for First-time Buyers – Just when you were figuring out the $7,500 tax credit for first-time buyers, Congress changed the rules and is now offering an $8,000 tax credit – and guess what? Buyers won't have to repay it unless they sell their homes within three years.
Mortgage Insurance Premiums – Thanks to Congress, MI premiums can be deducted in most cases by home buyers for mortgages issued after 2006 and before 2010 (although Congress may extend this provision). This one has income limits, so ask your tax professional for help.
New Standard Deduction – Prior to 2008, only taxpayers who itemized their deductions could deduct state and local property taxes. New legislation changes this for 2008 and 2009. Qualifying tax payers who don't itemize but pay property tax, get up to a $500 extra deduction; married filing jointly get up to $1,000.
Special Incentives
Tax-Free Profits on Sale – When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.
Other Benefits – Ask your tax professional about Penalty-free IRA payouts for first-time buyers, home improvement deductions, energy credits, and even moving expense deductions.
Friday, February 20, 2009
Mortgage Rates Hold Steady !
Mortgage Rates Hold Steady
RISMEDIA, February 20, 2009-Mortgage rates were largely unchanged from one week ago, with the average 30-year fixed mortgage rate remaining at 5.34%. According to Bankrate.com’s weekly national survey, the average 30-year fixed mortgage has an average of 0.41 discount and origination points.
The average 15-year fixed rate mortgage sank below the 5% threshold to 4.93% and the average jumbo 30-year fixed rate dipped to 6.92%. Adjustable rate mortgages were mixed, with the average 1-year ARM pulling back to 5.47% and the 5/1 ARM holding at 5.37%.
Mortgage rates finished where they started one week ago after yo-yoing up and down in the days preceding President Obama’s housing announcement. With the government committed to keeping mortgage rates low and recession fears continuing to grip investors, mortgage rates may head lower in the weeks to come. But an opposite force that cannot be ignored is the risk that foreign central banks that buy so much U.S. government debt will turn away amid the surge in issuance by the Treasury. If foreign banks do curtail their purchases, that would drive interest rates higher for government, corporate, and consumer borrowers.
Mortgage rates remain significantly lower than six months ago. Back in August, the average 30-year fixed mortgage rate was 6.66%, meaning a $200,000 loan would have carried a monthly payment of $1,285.25. With the average rate now at 5.34%, the monthly payment for the same size loan would be $1,115.58, a savings of $170 per month for a homeowner refinancing now.
Survey Results
30-year fixed: 5.34% — unchanged from last week (avg. points: 0.41)
15-year fixed: 4.93% — down from 5.03% last week (avg. points: 0.41)
5/1 ARM: 5.37% — unchanged last week (avg. points: 0.45)
Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
For more information, visit http://www.bankrate.com/mortgagerates.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Don’t miss other real estate headlines on RISMedia.com, see:
RISMEDIA, February 20, 2009-Mortgage rates were largely unchanged from one week ago, with the average 30-year fixed mortgage rate remaining at 5.34%. According to Bankrate.com’s weekly national survey, the average 30-year fixed mortgage has an average of 0.41 discount and origination points.
The average 15-year fixed rate mortgage sank below the 5% threshold to 4.93% and the average jumbo 30-year fixed rate dipped to 6.92%. Adjustable rate mortgages were mixed, with the average 1-year ARM pulling back to 5.47% and the 5/1 ARM holding at 5.37%.
Mortgage rates finished where they started one week ago after yo-yoing up and down in the days preceding President Obama’s housing announcement. With the government committed to keeping mortgage rates low and recession fears continuing to grip investors, mortgage rates may head lower in the weeks to come. But an opposite force that cannot be ignored is the risk that foreign central banks that buy so much U.S. government debt will turn away amid the surge in issuance by the Treasury. If foreign banks do curtail their purchases, that would drive interest rates higher for government, corporate, and consumer borrowers.
Mortgage rates remain significantly lower than six months ago. Back in August, the average 30-year fixed mortgage rate was 6.66%, meaning a $200,000 loan would have carried a monthly payment of $1,285.25. With the average rate now at 5.34%, the monthly payment for the same size loan would be $1,115.58, a savings of $170 per month for a homeowner refinancing now.
Survey Results
30-year fixed: 5.34% — unchanged from last week (avg. points: 0.41)
15-year fixed: 4.93% — down from 5.03% last week (avg. points: 0.41)
5/1 ARM: 5.37% — unchanged last week (avg. points: 0.45)
Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
For more information, visit http://www.bankrate.com/mortgagerates.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Don’t miss other real estate headlines on RISMedia.com, see:
Wednesday, February 11, 2009
The NTTA Board of Directors voted to set a 70 mph speed limit on the 121 Tollway.
Official 70 mph speed limit set on
121 Tollway
The NTTA Board of Directors voted during its Jan. 30 meeting to set a 70 mph speed limit on the 121 Tollway.
The Board acted after receiving the results of a speed limit study on Segment 2 of the 121 Tollway, which opened to traffic Aug. 31 and stretches from Old Denton Road in Denton County to Hillcrest Road in Collin County.
Drivers are already accustomed to the 70 mph speed limit on the main lanes of the 121 Tollway as it’s the same as the state-mandated default speed limit, known as the “prima facie limit,” which already was in effect.
The NTTA assumed responsibility of the 121 Tollway corridor from the Texas Department of Transportation (TxDOT) on Sept. 1, per a project agreement. The agreement called for TxDOT to conduct a speed limit study on the toll road’s main lanes after Segment 2 opened.
An NTTA consultant conducted the study using TxDOT procedures, which involved tracking and documenting the speeds of 125 random vehicles. Measurements were taken every one-half mile during weekday off-peak hours during good weather to assess free-flowing traffic.
The information on traffic speeds was then calculated to determine the 85th percentile speed – which is the speed that 85 percent of vehicles travel at or below. The 85th percentile speed is considered the most characteristic representation of safe and reasonable traffic speeds.
Segment 1 of the 121 Tollway – from Denton Tap Road in Dallas and Denton counties to Old Denton Road in Denton County – was built by TxDOT and opened to traffic in summer 2006. TxDOT conducted its initial speed study on that stretch of the toll road in March 2007 and set the speed limit as 70 mph.
The Board’s action means that the speed limit on the entire 121 Tollway corridor that is open to traffic is set at 70 mph.
121 Tollway
The NTTA Board of Directors voted during its Jan. 30 meeting to set a 70 mph speed limit on the 121 Tollway.
The Board acted after receiving the results of a speed limit study on Segment 2 of the 121 Tollway, which opened to traffic Aug. 31 and stretches from Old Denton Road in Denton County to Hillcrest Road in Collin County.
Drivers are already accustomed to the 70 mph speed limit on the main lanes of the 121 Tollway as it’s the same as the state-mandated default speed limit, known as the “prima facie limit,” which already was in effect.
The NTTA assumed responsibility of the 121 Tollway corridor from the Texas Department of Transportation (TxDOT) on Sept. 1, per a project agreement. The agreement called for TxDOT to conduct a speed limit study on the toll road’s main lanes after Segment 2 opened.
An NTTA consultant conducted the study using TxDOT procedures, which involved tracking and documenting the speeds of 125 random vehicles. Measurements were taken every one-half mile during weekday off-peak hours during good weather to assess free-flowing traffic.
The information on traffic speeds was then calculated to determine the 85th percentile speed – which is the speed that 85 percent of vehicles travel at or below. The 85th percentile speed is considered the most characteristic representation of safe and reasonable traffic speeds.
Segment 1 of the 121 Tollway – from Denton Tap Road in Dallas and Denton counties to Old Denton Road in Denton County – was built by TxDOT and opened to traffic in summer 2006. TxDOT conducted its initial speed study on that stretch of the toll road in March 2007 and set the speed limit as 70 mph.
The Board’s action means that the speed limit on the entire 121 Tollway corridor that is open to traffic is set at 70 mph.
Tuesday, February 10, 2009
FHA Loan Incentive. What Do You Think?
FHA has a 203KS loan that will give a buyer money added to the mortgage to repair and or update a home being purchased, that is in need of some TLC.
Here is some information on what qualifies under this loan.
For help finding a home that will qualify give me a call.
What improvements are eligible under the new Streamlined (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:
• Repair/Replacement of roofs, gutters and downspouts
• Repair/Replacement/upgrade of existing HVAC systems
• Repair/Replacement/upgrade of plumbing and electrical systems
• Repair/Replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, weather stripping, etc.
• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair/replace/add exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Septic system and/or well repair or replacement
What are the minimum and maximum amounts for repair costs under this program?
Given the need for homeowners to make minor repairs without exhausting personal savings, and in consideration of the increasing cost of materials, the minimum repair cost of $5,000 is eliminated and the ceiling is now raised to $35,000. This revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient. Note that as described below, when the repairs exceed $15,000, the mortgagee must perform or obtain an inspection to determine that all listed repairs were completed.
Can this program be used for repairs and improvements on purchases of HUD Homes?
Like the regular Section 203(k) program, Streamlined (k) may be used for single-family housing sold by HUD. REO properties that have been designated by FHA’s Management and Marketing contractor (M&M) as “insurable” with repair escrow ($5,000 or less in required repairs) or “uninsurable” (with more than $5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items outlined in this Mortgagee Letter.
For questions give me a call or send an e mail. I will be happy to help you find a home, or help you find a great lender.
Have a great week,
Kelly
817-881-1612
Here is some information on what qualifies under this loan.
For help finding a home that will qualify give me a call.
What improvements are eligible under the new Streamlined (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:
• Repair/Replacement of roofs, gutters and downspouts
• Repair/Replacement/upgrade of existing HVAC systems
• Repair/Replacement/upgrade of plumbing and electrical systems
• Repair/Replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, weather stripping, etc.
• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair/replace/add exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Septic system and/or well repair or replacement
What are the minimum and maximum amounts for repair costs under this program?
Given the need for homeowners to make minor repairs without exhausting personal savings, and in consideration of the increasing cost of materials, the minimum repair cost of $5,000 is eliminated and the ceiling is now raised to $35,000. This revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient. Note that as described below, when the repairs exceed $15,000, the mortgagee must perform or obtain an inspection to determine that all listed repairs were completed.
Can this program be used for repairs and improvements on purchases of HUD Homes?
Like the regular Section 203(k) program, Streamlined (k) may be used for single-family housing sold by HUD. REO properties that have been designated by FHA’s Management and Marketing contractor (M&M) as “insurable” with repair escrow ($5,000 or less in required repairs) or “uninsurable” (with more than $5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items outlined in this Mortgagee Letter.
For questions give me a call or send an e mail. I will be happy to help you find a home, or help you find a great lender.
Have a great week,
Kelly
817-881-1612
Monday, February 2, 2009
Google 411
News You Can Use
Here's a number worth putting in your cell phone, or your home phone speed dial: 1-800-goog411 or 1-800-466-4411. This is an awesome service from Google, and it's free -- great when you 're on the road. Don't waste your money on information calls and don't waste your time manually dialing the number. Imagine... driving along in your car and you need to call a golf course, your favorite store or restaurant -- you don't know the number. You hit the speed dial for information that you have programmed (1-800-goog411). The voice at the other end says, "Say the name of the business and the City & State." you say, "Gaylord Hotel, Grapevine, Texas." He says, "Connecting," and The Gaylord answers the phone. How great is that?
Works on cell and land line phones. You can also text 46645 and then enter the business name, city and state .
This is nationwide and it is absolutely FREE!
Click on the link below and watch the short clip for a quick demonstration.
http://www.Google.com/goog411/
Here's a number worth putting in your cell phone, or your home phone speed dial: 1-800-goog411 or 1-800-466-4411. This is an awesome service from Google, and it's free -- great when you 're on the road. Don't waste your money on information calls and don't waste your time manually dialing the number. Imagine... driving along in your car and you need to call a golf course, your favorite store or restaurant -- you don't know the number. You hit the speed dial for information that you have programmed (1-800-goog411). The voice at the other end says, "Say the name of the business and the City & State." you say, "Gaylord Hotel, Grapevine, Texas." He says, "Connecting," and The Gaylord answers the phone. How great is that?
Works on cell and land line phones. You can also text 46645 and then enter the business name, city and state .
This is nationwide and it is absolutely FREE!
Click on the link below and watch the short clip for a quick demonstration.
http://www.Google.com/goog411/
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