March  Newsletter

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month’s issue includes topics such as:

“Make Your Home Appealing to Buyers”;
“Know Your Expenses Before You Buy”;
“Home Equity Use No Longer Home Equity Abuse”;
“Get Out Of Debt”;
“Incentives for Going Green”;

Plus a roundup of February real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

Enjoy!

Related articles

• Smart Ways for Seniors to Tap Home Equity (money.usnews.com)

home with the tax credit:

Tax Credit & Tax Refund

News You Can Use

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month’s issue includes topics such as:

“Priced to Sell”;
“Most Homebuyers Have No Regrets”;
“Staging a Photo Ready Home”;
“Handling Neighborly Disputes”;
“Social Benefits of Housing”;

Plus a roundup of August real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

Mortgage Interest. For most homeowners, the bulk of your mortgage payment is going towards interest – and that’s a big tax break for you! The mortgage interest on your primary residence is fully tax deductible, unless, of course your loan is more than $1 million.

You can also deduct late payment charges as home mortgage interest as long as the payment was not late due to a specific service received in connection with your home loan. Also, if you pay off your mortgage early and incur a prepayment penalty, you can deduct that penalty as home mortgage interest (subject to the same requirements for late payments).

Property Taxes. Your property taxes – the annual taxes based on the assessed value of your property – can also be deducted. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners’ insurance went into an escrow account when you closed on your mortgage. You can also review your cancelled checks to determine your total real estate tax deduction.

Loan Points. Any points you paid to get a better rate on a home loan, are tax deductible in the year you made the purchase as long as:

• The loan is secured by your primary residence and it was used to buy, improve or build the home.
• Paying points is an established business practice in your area;
• The points are computed as a percentage of the loan principal;
• The points are clearly defined on the buyer’s settlement statement; and
• You put cash into your home purchase in an amount at least equal to the points you were charged.  

Loan Points on a Refi. The points you paid on a refinanced loan may also be tax deductible, however in most cases, the points must be deducted over the life of the new loan. So if you paid $2,000 in points to refinance a 30-year mortgage, you can deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year on the new loan.

Interest on a Home Equity Loan. The interest on a home equity loan may be tax deductible up to $100,000. However, if your home equity loan, when combined with your first mortgage amount, increases the debt on your home to an amount more than the property’s actual value, you’ll face deductibility limits. In these cases, the IRS allows you to deduct the smaller of interest on a $100,000 loan or your home’s value less the amount of your existing mortgage.

Related articles by Zemanta

• Mortgage Interest Deduction Myth (bargaineering.com)
• Before Buying a Home (imbrandon.com)

 

Many of you bought your home in 2008 and 2009 using the $8,000 tax credit.   

Here are some usefull links directly from the IRS to help you file the tax credit properly:

• Basic Information
• Claiming the credit on your tax return
• Homes purchased in 2008
• Homes purchased in 2009
• Scenarios

In case you do file your tax return your self  and need help you can visit the official IRS website by clicking here.

Image by joiseyshowaa via Flickr

Do you live near intersection or high traffic areas?  Here are some useful tips on how to reduce the traffic noise, enjoy your outdoor activities and have a nicely landscaped backyard, all at the same time:  How to dampen traffic noise

Following are the statistics for the month of January, 2010: 

• Actively listed properties: 207

             Almost the same as it was in December 2009 (208) 

• Homes that went “Pending Sale” for the last week of January:  34

             This is just a bit lower than it was for the same period in December (27)

• Number of homes “Sold” in the month of December: 92

              This is a significant drop compared to the previous month when

              the number of sold home was 148 

• The Average Days on the market of the Sold Properties: 46

             In December last year this number was 62.  

• Average Listing Price: $296,75 
• Average Sale Price: $244,573

 The charts below reflecting these numbers as well:

If you would like to have detailed statistics for other areas of the Central Valley, please feel free to call or email me – I would be glad to provide it for you.

Realty World Corral Hollow agents have always been actively involved in helping the community throughout the years and I am proud to be one of them.  We care about our clients and we care about the community.

In these troubling times, Corral Hollow agents are available for you to educate you and to give you directions as to what would be the best option for your individual situation. A confidential, personal consultation does not cost any money and if you get nothing else out of it, just knowing that there is someone you can trust and talk to, will make you feel better and it will be well worth it.

Being agents at Realty World Corral Hollow, our ongoing education allows us to stay informed of the newest laws, rules and regulations that would affect your situation as a homeowner.

For most of us, our biggest investment in our lives is our home.  And it is worth every effort to fight for it.  As your realtor, I would stand and fight with you, until we can reach a reasonable solution.  Even if you are one day away from foreclosure, there is still time to act. 

I urge you to pick up the phone and call me or any Corral Hollow agent to find out about your options. 

Image via Wikipedia

Bi-Weekly Mortgage

Did You Know? Making one extra mortgage payment a year will knock years off your mortgage and save you thousands of dollars. Click here to learn more.

If you search for “bi-weekly mortgage” with an Internet search engine, you will be overwhelmed by the number of companies offering “Bi-weekly Mortgage Reduction Services” or “Bi-weekly Savings Programs.” Beware, you are entering dangerous waters.

Beware of Bi-Weekly Mortgage Reduction Services and Savings Programs

These “Reduction Services” and “Savings Programs” are charging you fees to “make a bi-weekly mortgage payment” for you. The enticement is that they will save you an impressive amount of money on your mortgage and reduce the number of years you pay on your mortgage.

The enticement is that they will make bi-weekly mortgage payments for you.

The real story is that they are not actually making bi-weekly payments on your mortgage. They are making bi-weekly deductions from your bank account. These funds are placed into an account from which your monthly mortgage payment is made (which only takes 24 deductions – but during the course of a year 26 deductions will be made from your account). With the extra 2 deductions, the “Service” makes an additional mortgage payment. In other words rather than making 12 mortgage payments, 13 payments are made.

The enticement is that they are providing a special service to you that would either not be possible for you to get on your own or that you won’t have the time or discipline to make it happen.

The real story is that you can easily make an additional mortgage payment each year. An easy way to do this is to have your mortgage payment automatically deducted from your account each month with an additional 1/12 payment to be applied to the principal amount. At the end of 12 months, you will have made an additional payment. And you won’t have to pay any fees to a “Service”.

Remember: when you have questions, you can always turn to a local Realtor® and he or she will be glad to assist you. 

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