Bill Kamboukos

The making homes affordable program has been a program that has been discussed a great deal lately. This newest program from the government allows current homeowners to potentially refinance their mortgages if they owe between 80% and 105% of the current value of their home. As well as modify their mortgages if they are in a situation where they are further upside down or not able to qualify for the refinance program. Please see our previous articles for more details on these programs.

The one main qualification however to be eligible for this program is that your loan must be owned by Fannie Mae or Freddie Mac. So the question we have received recently is how does one know whether Fannie or Freddie owns their loan? Keep reading to find out.

You may lookup if Fannie Mae owns your loan online at: http://loanlookup.fanniemae.com/loanlookup. You type in your address and ZIP code and verify that you're the owner of the dwelling, and the system will tell you whether Fannie owns the loan. Alternately you may call Fannie from 8 a.m. to 8 p.m. Eastern time, at (800) 732-6643.

You may look up if you Freddie Mac owns your loan online at: https://ww3.freddiemac.com/corporate. You have to provide your full name, address, city, state, ZIP code and Social Security number, and verify that you're the owner of the dwelling. Alternatively you may call Freddie from 8 a.m. to 8 p.m. Eastern Time at (800) 373-3343.

Finally, there is also a Making Home Affordable Web site from the Federal Government with this information as well, located at: http://www.makinghomeaffordable.gov/loan_lookup.html. The same links and phone numbers above are provided there, as well as some additional information on the website.

These tools will allow you to find out whether you are potentially eligible for one of these programs, but not necessarily qualify you for either program. For more information on your options feel free to contact your existing loan servicer or call us for more information.

For more information on programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

Credit Scores Imperative For Mortgage Financing:

Five Tips To Keep Your Credit Score High

Now, more than ever, having a strong credit score is imperative for mortgage financing and any other type of financing you are looking for. Even programs such as FHA and VA financing which have traditionally allowed for lower credit scores are now providing minimum credit score guidelines. Whether you are looking to purchase, refinance or just improve your overall credit situation here are five tried and true tips to keep your credit score as high as possible.

Tip 1: Never Close Credit Cards After Paying Them Off.

Closing open tradelines such as a credit card will actually lower your credit score, since you are eliminating established credit.

Tip 2: Never Make a Major Purchase Right Before Having Your Credit Pulled.

Every major purchase you make and don't pay for in cash will hurt your credit score in the short term.

Tip 3: Never Keep the Balances on Your Credit Cards at Over 50% of Their Limits.

You are actually better off having balances on multiple credit cards and not having any paid off. As opossed to paying a single credit card off and having another card near its limit.

Tip 4: Never Leave Yourself Unprotected from Hundreds of Companies Who can Run Your Credit Monthly, Without Your Permission.

You may opt out and avoid these unecessary pulls on your credit that happen monthly, contact us for the process of how to do this.

Tip 5: Never Allow Incorrect Information to Sit on Your Credit Report.

If your credit isn't perfect, there is a good chance that there is some incorrect information reporting on it. It is imperative to pull your credit at the very least anually and dispute any incorrect information, so that it may be removed from your report and raise your score.

For more information on credit scores and current programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

Mortgage Servicer Contact List:

Phone Numbers For Borrowers To Reach Existing Servicers

Below you will find a list of names and phone numbers for servicers, which is by no way a complete list, but a handy reference for both home owners and real estate agents to have when contacting mortgage servicers.

Mortgage servicers

Company name	Phone number
Accredited Home Lenders (refinance)	(877) 683-4466
American Home Mortgage Servicing Inc.	(877) 304-3100*
Aurora Loan Services	(800) 550-0508
Avelo Mortgage LLC (no longer servicing loans -- see Litton Loan Servicing)	(800) 603-4517
Bank of America	(800) 846-2222
BB&T Mortgage	(800) 827-3722*
Carrington Mortgage Services	(800) 561-4567
Central Pacific Bank	(800) 342-8422*
Charter One Bank (also CCO Mortgage and Citizens Bank)	(877) 745-7366
Chase Home Finance	Prime loans: (800) 848-9380 Subprime loans: (866) 665-7629
Chevy Chase Bank	(866) 391-8688
CitiMortgage	(866) 272-4749
Countrywide Home Loans	(800) 669-6650
Downey Financial Corp.	(800) 824-6902, ext. 6696
EMC Mortgage Corp.	(888) 577-4011
EverHome Mortgage	(800) 669-7724
First Horizon Home Loans (second mortgages)	(800) 919-5376
Flagstar Bank	(800) 968-7700, ext. 9780
Fremont Investment & Loan	(866) 484-0291
GMAC Mortgage	(800) 850-4622*
GreenPoint Mortgage Funding (now serviced by Countrywide)	(800) 669-6650
Homecomings Financial	(800) 850-4622*
HomeEq Mortgage Servicing	(866) 822-1471
HSBC Mortgage Services (also HFC or Beneficial)	(800) 365-6730*
Indymac Bank	(877) 908-4357
Litton Loan Servicing	(800) 603-4517
National City Mortgage	(800) 523-8654
Nationwide Advantage Mortgage Co.	(866) 350-8884
Ocwen Loan Servicing LLC	(800) 746-2936*
Ohio Savings Bank (Now Amtrust)	(800) 860-2025 ext. 8917
Option One Mortgage (Now American Home Mortgage Servicing)	(877) 304-3100*
PHH Mortgage	For borrowers facing delinquency: (800) 330-0423* For borrowers in foreclosure: (800) 750-2518
Popular Mortgage Servicing	(800) 383-2292
ResMae Mortgage Corp.	(866) 794-8044, ext. 5944
Saxon Mortgage Services Inc.	(888) 325-3502*
Select Portfolio Servicing	(888) 818-6032
SunTrust Mortgage Inc.	(800) 443-1032
U.S. Bank Home Mortgage	(800) 365-7900
Wachovia Corp.	(800) 642-0257*
Washington Mutual	(866) 926-8937*
Wells Fargo	(800) 416-1472

*No direct line to loss mitigation or loan resolution department.

For more information on current programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

$8,000 HOME BUYER TAX CREDIT -

Frequently Asked Questions

For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. Below are some frequently asked questions and answers on the new credit

1. What's this new homebuyer tax credit for 2009?

The 2008, $7500, repayable credit has been increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

2. Who is eligible?

Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9000, an $8000 credit would wipe out all but $1000 of the tax due.

4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $5000?

This tax credit is what's called "refundable" credit. Thus, if the eligible purchaser's total tax liability was $9000, the IRS would send the purchaser a check for $3000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($9000 - $5000 = $3000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

5. Is there an income restriction?

Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.

6. How is my "income" determined?

For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.

7. Are there restrictions related to the financing for the mortgage on the property?

In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.

8. Do I have to repay the 2009 tax credit?

NO. There is no repayment for 2009 tax credits.

9. How do I apply for the credit?

There is no pre-purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.

For more information on home buyer tax credits, current mortgage programs, rates and more, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

Your 2009 Homeowner Tax Deductions:

Taking Advantage of Deductions For Homeowners

Nearly everyone has heard about the new $8,000 tax credit for first-time home buyers, but what about tax advantages if you're a homeowner today? As we approach the deadline for filing your taxes, we will discuss tax benefits that exist for existing home owners. Some of the many tax advantages for current home owners are listed below. As always, you should consult a professional tax advisor for details, but here's a list of the top tax deductions for homeowners:

1. Mortgage Interest - Mortgage interest on a home is usually fully tax-deductible. You can deduct interest on multiple mortgages, as long as they do not exceed $1 million. The purpose of the mortgage must specifically be to buy, build or improve a home.
2. Points Paid on a Purchased/Refinanced Loan - If you refinanced last year, you may be able to write-off any points you paid to buy down the mortgage rate. To do this, you deduct the points proportionately over the life of the new loan. For example, if you took out a 30-year loan, you would deduct 1/30th of the points you paid each year. Remember, if you've refinanced before, and you have points from the previous refinance that you haven't finished deducting, you can write off the rest of those points in the year you refinance.
   If you bought your home last year, the points you paid at closing are deductible on your income tax statement for that year. If the seller paid some (or all) of your points for you, you may be able to deduct those seller-paid points too!
3. PMI - extended through 2010. Late in 2007, Congress extended the tax deduction for homeowners paying private mortgage insurance through 2010. This one has some restrictions - you must have bought or refinanced the home after January 1, 2007 and have an adjusted gross income under $110,000.
4. Capital Gains with No Income Taxes - Thanks to the 1997 Tax Act, once every two years, single homeowners can realize a tax-exempt profit of up to $250,000 - as long as the seller owned and occupied the home as a principal residence during any two of the last five years. Married homeowners who file jointly on their tax returns do not have to pay taxes on up to $500,000 of gains when they sell their primary residence.
5. Real Estate and Property Taxes - State and local property taxes can be deducted as an expense against income. However the real estate taxes are only deductible in the year they are actually paid to the government.
6. Home Offices - Work from home? If you have a qualified office in your home, you may be able to deduct costs associated with maintaining the portion of your home exclusively used for business. For example, 100% of your expenses related to the office such as painting and upkeep are deductible, as well as a portion of indirect expenses such as the cost of utilities and garbage pickup.
7. Vacation Homes - Owning a vacation home has more benefits than you may think. You can deduct some of the costs associated with owning a vacation home, such as real estate taxes, personal property taxes, mortgage interest, and points.

For more information on current programs for existing and potential home owners, please contact Bill Kamboukos and Carlos Felix of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com