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Five Tax Breaks for Homeowners
February 10, 2017 /Now that it’s February, most of us have probably emerged from our flabbergasted holiday stupors and (with the help of a strong cup of coffee), finally achieved normalcy just in time for tax season. However, before you panic and begin overturning couch cushions to find the receipts you foolishly lost back in September, it’s useful to remember that plenty of helpful tax breaks exist for homeowners. Tax breaks for homeowners vary widely according to each person’s unique situation. Even so, it helps to be aware of the general options available for homeowners looking to save money during the tax season. Read on to learn more about how your home can help you save money when it comes time to file. Deductions for Mortgage Interest The interest American homeowners pay on a mortgage is tax deductible. For those who are married and filing jointly, it’s possible to deduct your interest payments for mortgages totaling as much as $1 million. Additionally, private mortgage insurance payments are deductible for those homeowners who took on a mortgage after 2006. Overall, these tax breaks make a big difference when it comes to alleviating the financial burden of homeownership. In fact, in 2011 American homeowners benefited…Read more
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No Need to Fear the Downpayment
February 3, 2017 /New homeowners are liable to get nervous when it comes to applying for a mortgage. Many people have trouble sifting through the real estate terminology and the legal requirements of buying a home. However, if there was one aspect of buying a home that makes people the most nervous, it’s probably the downpayment. If making a downpayment is stressing you out, you should know there are many ways to obtain downpayment assistance, or even secure a mortgage without any downpayment at all. So, if you’re a buyer who wants to make a very low down payment or avoid one altogether and maintain maximum liquidity, check out some of the options outlined below. State Bond Loans In general, State Bond Loans help buyers secure a loan at below-market interest rates. The exact rates offered through State Bond Loans vary, but they generally increase long-term affordability and decrease monthly home payments. These bonds are available through local housing agencies, which sell tax-exempt mortgage revenue bonds and then use the income from these sales to offer below-market rate loans to buyers. This type of loan looks a little different depending on the state you’re living in. The Washington State Housing Finance Commission is the organization…Read more
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Education = Power.
December 2, 2016 /Mortgage Rates on the Rise as Equities Recover As expected, mortgage rates climbed during Thanksgiving week as equities recovered based on speculation of economic expansion. In fact, these market conditions led the Dow Jones Industrial Average to record highs. In general, with election season fading into the rearview mirror and with Trump beginning to assemble the foundations for his political team, it’s expected that markets will return to a sense of normalcy after their initial uncertainty. That’s not to say that we won’t see any more volatility; in fact, market experts expect that, even if things are settling down now, we should expect a few more market surprises in the foreseeable future. Any political concerns aside, it’s important to note that mortgage rates are increasing, just as this blog has predicted on numerous occasions. More specifically, just before Halloween, the average 30-year APOR was about 3.52%. By the end of the first week in November, that rate had recorded a modest increase and risen to 3.58%, while it rose again the following week to 3.61%. By the end of Thanksgiving week, the average 30-year APOR had increased to about 3.98%. Likewise, MarketWatch estimates that the average 30-year FRM has…Read more
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What Do We Pay Real Estate Agents For?
November 9, 2016 /These days, a large swath of the population seems fond of predicting the imminent decline of the real estate agent. With the newfound ease of viewing homes (along with accompanying neighborhood/community statistics) online, it occasionally seems like the services provided by real estate agents are unnecessary expenses. If that’s your line of thought, then think again: appearances are deceiving. In reality, real estate agents perform far more tasks than merely finding a home for clients, and they are paid for a much more diverse array of services. In fact, the average real estate agent is paid for vital but abstract services that no Internet search can provide, including problem solving and stress/emotional management. So, if you feel like you can handle your home search with a measly tour on Google, read on to see why working with a real estate agent is always the better option. Problem Solving Even the most seamless real estate transactions run into occasional setbacks. Whether you lose a bidding war on your dream home, or the home you’re about to close a deal on requires unexpected renovations, buying a home almost always involves at least one unforeseen hiccup. This observation is not meant to discourage…Read more
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Mortgage Rates are Low: Why Should You Care?
August 2, 2016 /We’re only a little more than halfway into the year, and already the housing market is flexing its muscles with a strong showing from new home sales. The U.S. Department of Housing and Urban Development has announced that there were 592,000 new home sales in June, a figure which outpaces original expectations and estimations by tens of thousands of units. The number of new home sales has increased about 4% in the last month, while current new home sales are roughly 25% higher than they were in June 2015. More to the point, June 2016 saw the highest new home sales since 2008. All in all, demand for new housing remains strong, and the housing market is not only continuing its robust, post-recession recovery, but also continues to be a primary contributor to the U.S. economic recovery. The success of new home sales has relied in large part on currently low mortgage rates. For individuals and households with favorable credit history, the average 30-year, fixed rate mortgage is about 3.5%. Back in June 2015, the average 30-year rates were hovering around 4% (which, it’s worth mentioning, was an already low figure). With rates arriving at even lower levels, it’s no…Read more
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Maybe the sky isn’t falling.
May 11, 2009 /Maybe the “sky” isn’t falling?! A chicken and a pig walk into a grocery store…………..Nah, I’ll save that story for another time. : ) I get asked at least once every day, often multiple times: “Andy, how are things going in real estate, REALLY?! Is it as bad as it sounds?" Truthfully, in my opinion: No! I’m seeing offers being written on homes - almost every day. I’m meeting with sellers who realize 2007 prices are gone - but that they can still sell their home, and do. I’m helping investors find incredible values - on all types of properties. I’m marketing new construction homes for Builders - and receiving offers every weekend. I’m working with Banks to offer 3.75% interest rates to First Time Home Buyers – who are loving it! Yeah, I’d say things are “looking up”. Did you read the article in last week’s Seattle Times entitled: “Pending sales of single-family homes in King County surged in April”? The article mentions some of the good news: King County Pending sales were up 25% in April over March. Snohomish County Pending sales were up 28% in April over March. One factor to keep in mind, though, is that…Read more
