Tax Benefits of Homeownership!
July 27, 2009
“Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.”
The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.
Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______ Total deduction
$12,577 =
Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate) Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.
Why is the number of Short Sales rising?
July 23, 2009
“Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.”
What is a short sale?
A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.
Why is the number of short sales rising?
Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.
A short sale can also be the best option for a homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially
The loan modification and HUD!
July 22, 2009
Should I pay for a loan modification? Who can help me? Is a loan modification best for me? Click on the highlighed link and get answers to some of the most Frequently Asked Questions regarding loan modifications.
What if you tried a Loan Modification, but it was denied or rejected. Are you currently facing foreclosure? Are you behind on your payments? Thinking about walking away? Let us help! Lets discuss how a Short Sale might work for you. (916)224-0482.
