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Ways To Get Out Of A Lease

05-23-09
Dave Dugdale
Dave Dugdale: Real Estate - Other in Superior, CO

New Video I just released on creative ways to break your lease.

Typical Tax Deductions for Homeowners. from Christopher Shearer

Christopher Shearer: Loan Officer in Fort Lauderdale, FL

Christopher Shearer

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.

Don't Forget USPS Post Office Is Increasing Rates on May 11, 2009. Christopher Shearer

Christopher Shearer: Loan Officer in Fort Lauderdale, FL

Christopher Shearer

The U.S. Postal Service announced that the price of a first-class stamp will increase from 42 cents to 44 cents on May 11, 2009. That gives you plenty of time to stock up on what the Post Office calls its “Forever Stamp,” a special stamp that has no price denomination printed on it but is good for any first-class letter weighing up to one ounce -- forever, no matter how much postal rates increase in the future. This means you don't have to locate and horde a bunch of one- and two-cent stamps to mail your letters after the increase. You can simply purchase these special stamps at today's 42-cent rate and use them now or in the future, even if postal prices double or triple. The forever stamp, an idea adopted in Europe years ago, was adopted in the US in 2007 and features the Liberty Bell.

Why is this important? Well, here's our two cents. In 1968, first-class stamps were six cents. Since then, the price has risen only 15 times. However, in December 2007, legislation was passed linking postal rates to the consumer price index, which has caused rates to increase each of the last two years – and could easily lead to annual increases from now on. Postal officials estimate that the 2-cent increase will only cost the average household about $3-a-year, but if you utilize the postal service a lot for your business, be aware that other services will also increase on May 11 as well, which do not offer this “forever” feature. This includes a one-cent increase of postcard stamps to 28 cents, a five-cent increase on the first ounce of a large envelope to 88 cents, and a five-cent increase to the first ounce of a parcel to $1.22.

Are You Still Waiting On The Government? from Christopher Shearer

Christopher Shearer: Loan Officer in Fort Lauderdale, FL

Christopher Shearer

During the first quarter of 2009, the first 100 days of the new President's term, you are no doubt going to hear a lot of news stories about the economic stimulus plan and the financial rescue package and their possible ramifications to the real estate and mortgage markets.

You're going to see headlines about new incentives for home buyers and hear stories about 4% interest rates. But the truth is that right now, at the time of the writing of this article, the government already has in place one of the largest tax incentives for qualifying home buyers it has ever offered - up to an $8,000 tax credit for first-time buyers, and mortgage rates are within a half a point of being the lowest they've been in our country's history.

The truth is that, while all of this is great news for those looking to buy or refinance a home in 2009, none of it matters if you can't qualify for financing. None of it matters if you sit on the fence and watch the great opportunity of homeownership pass you by.

Make sure your financial house is in order
If the idea of buying or refinancing a home in 2009 has even crossed your mind, give us a call. We'll review your financial situation and see what makes sense for your individual goals.

Remember, because of increased delinquencies and today's tougher economy, lenders have tightened standards for both new purchases and refis. And while mortgage financing is certainly available and affordable to everyone who qualifies, you're going to need a solid credit score, you'll need to be able to document your income, and, if you're purchasing a new home without a special government program from the VA or USDA, you're likely going to need a down payment as well – at least 3.5% for an FHA loan. And there's no stimulus bill or bail-out plan that is going to change this. So, if you're looking to purchase a new home in 2009, take the time to locate the following items:

  • Your W-2s and tax returns for the last two years;
  • Your last three months of bank statements; and
  • Pay-stubs for the most recent 30 days.

If you haven't checked your credit in awhile, now is the time to do so. A lot could have changed since the last time you checked it, good or bad, and you don't want any surprises that might alter your plans. We'll gladly review your credit for you and see if there is anything that needs to be addressed, but don't wait. It would be a shame to miss out on a great opportunity simply because you didn't check your credit report.

For homeowners with enough equity to refinance, now may be the time to lock in a low rate. Sure rates could go lower, even to the 4% level you've heard about in the news. But rates could just as easily start to rise again, and home values could drop even lower, making it difficult for your house to appraise. In the financial and credit markets, there are no guarantees, and there's nothing in the stimulus bill or bail-out plan to address mortgage rates. Why lose money waiting around for an opportunity to save a little bit more each month in the future when you can have significant savings every month right now?

Let us review your mortgage and see if you can benefit. The worst thing that could happen is you find out that you already have the best mortgage and interest rate possible.

Need Hard Money Lender For Cash Out Refinance in Boulder County, Colorado

Brian Quigley: Mortgage Company in Denver, CO

Borrower is builder who bought existing home for $500K in 9/08

He tore it down and built a new owner occupied home which sits on 1 acre

He owes $450K on first, and $150K on second

He wants 100-150K cash out

I need a refinance, probably hard money

He is self employed, with hard to prove income. DTI will probably be high

Will appraised for 1.4 million

55% LTV

CALL or email me at loans@brianquigley.com

720 949 5630

LOCAL BROKERS ONLY!