May
10
Let me answer this question with another question: Would you like to pay more money or less money to buy a house? Most people would like to pay less money. And that’s why a 15-year mortgage is usually a better choice. There are two factors that make a 15-year mortgage cheaper than a 30-year mortgage. …
Apr
21
The federal government’s intervention in the housing market is about to show its face again. Much of the housing market has been more or less stuck in neutral–or even reverse–since the federal income tax credits of 2o10 expired. They caused a home buying frenzy in early 2010, as many buyers bought homes sooner than they …
Apr
20
Home Sales Up, Prices Down The National Association of Realtors (NAR) reported that the number of existing homes sold in March was up 3.5% versus March 2010. However, the median home price fell 5.9% to $156,900. Read more here. Connecticut Looks to Change Homeowners Insurance Laws The state House of Representatives in Connecticut is considering a …
Mar
29
2010 is the last year in which you can claim a deduction for mortgage insurance premiums. Enter your qualifying mortgage insurance premiums on line 13 of Schedule A; enter the total of your allowable deductions from Schedule A on line 40 of Form 1040. If your adjusted gross income (AGI) is greater than $100,000, you cannot …
Mar
25
In 2008 and 2009, anyone who paid property taxes could claim a deduction on their income taxes. However, beginning for tax year 2010, homeowners must itemize deductions on Schedule A in order to receive a deduction for property taxes. (This was also true before 2008; the rules changed for 2008 and 2009, but the old …
Mar
23
You must itemize deductions on Schedule A in order to receive a deduction for mortgage interest. Interest paid on both your main home and a second home is deductible. This includes interest on first and second mortgages, home equity loans and lines of credit, and refinanced mortgages. Remember that points you pay to your lender are …
Mar
23
Simply stated, a point is a fee that you pay to your lender when you take out a mortgage. One point is equal to one percentage point of your loan value. For example, if your mortgage is for $150,000, then one point is $1,500 ($150,000 × 1%). Common examples of points are origination fees and …
Mar
23
An origination fee is an amount charged by a lender for granting a mortgage. This fee is usually expressed as a percentage of the loan amount. For example, if the loan amount is $300,000 and the origination fee is 0.5%, then the total fee is $1,500 ($300,000 × 0.5%).
Mar
23
When taking out a mortgage, a buydown point is an upfront fee or finance charge that you pay in exchange for getting a lower interest rate on the mortgage. For example, a lender may offer a $200,000 mortgage with an interest rate of 5% without any buydown points. In order to lower the interest rate …
Mar
23
When issuing a mortgage, lenders typically charge borrowers for the cost of getting the property appraised. This is the appraisal fee. In most cases, mortgage lenders require that the property be appraised by a professional appraiser before they will issue a mortgage. Lenders do this to make sure that the property is worth at least …