Yes – You May Still Deduct Mortgage Insurance (PMI) – For Now
Posted by Paul Gonzales | Leave A Comment »
Although Congress passed this law back in 2007 and extended it through this year (2011), this remains a common question for owners of real estate. Mortgage insurance is typically a monthly expense that occurs when a property is purchased with less than 20% down payment or refinanced with less than 20% equity.
Homeowners who itemize their income tax deductions on the Federal Schedule A tax form can claim the PMI by entering it on line 13, in the section entitled “Interest You Paid”. You should find this figure on the form 1098 mailed to you by your lender at the beginning of each new year. The deduction may be taken for coverage issued by the Federal Housing Administrations (FHA), Veterans Administration and the USDA Rural Housing Service as well as private insurers.
There are, of course, limitations and restrictions. For example, the PMI deduction is allowed provided you took out the mortgage on or after January 1, 2007. The total amount you may deduct may be limited or reduced based on your income and how you file (for example, married filing jointly vs. married filing separate returns). Above those maximum income limits the percentage of PMI you may deduct is reduced for every $1,000 that your income exceeds your particular limit. The current law allows this deduction through the end of this year.
For more general information checkout the following link on Bankrate.com:Deducting private mortgage insurance http://www.bankrate.com/finance/taxes/deducting-private-mortgage-insurance.aspx#ixzz1Gand6lk2
Nothing discussed above should be construed as tax advice. Heed the caveat and always seek advice from a tax professional.
Paul Gonzales, Countywide Mortgage Lending (760) 746-7388 paulforloans@aol.com NMLS CA-DOC290493
Related Posts: CW Mortgage, Education, Financial news, Home Loans, Homeowners, Industry Updates, Mortgage News, New Homes, Real Estate News, tax credit
Carlsbad Open House Saturday & Sunday 1-4PM-The Jeff Cole Group
Posted by Jeff Cole | Leave A Comment »
Just Listed-Rancho Carrillo Condo in Carlsbad. Open House this Saturday and Sunday from 1-4pm.
Bank Owned, located in Serrano, dual masters, with one suite located on the first floor. Private patio and balcony, move in ready. FHA approved, enjoy the wonderful amenities this community has to offer including pool, spa, community center, walking trails and so much more. Close to shopping, restaraunts, award winning schools and minutes to the beach! $249,900
For more information view our website at www.JeffColeGroup.com or contact Jeff directly at 760-525-7787
Related Posts: Agent Services, Carlsbad, New Listings, Open Houses
The Campbell Group Voted As One Of 2008 & 2009 Best In Client Satisfaction!
Posted by Tesha Buchan | Currently 2 Comments »
- Successfully Helped Hundreds of San Diego Clients Achieve Their Real Estate Dreams
- Personalized Service Provided for Every Customer
- First Class Real Estate Service that is Passionate and Thorough
- Excellent Listening, Negotiating and Problem Solving Skills
- Building Strong Lasting Lifelong Relationships
The Campbell Group has successfully helped hundreds of people in San Diego meet their Real Estate goals since 1987. Working hard over the years building a vast knowledge and expertise in the real estate business has enabled them to serve a client base ranging from the first time home buyer to the experienced executive.
Linda Campbell has demonstrated that for every obstacle there is a solution. Real estate is a relationship business and Linda is an expert taking care of her clients. Tesha Buchan brings to the Campbell Group an excellent background in escrow and management. Tesha passionately focuses on serving the best interest of her clients. Along with obtaining his brokers license Steven Campbell’s strong negotiating skills, knowledge of different market areas and business background serves him well with his clients.
The Campbell’s feel that successful Real Estate transactions require clear and consistent communications. They listen, they communicate and they take action. They demonstrate that great deals can be found, but even better deals are carefully negotiated!
Steven & Linda Campbell, Tesha Buchan * Exclusive Properties
16890 Bernardo Center Drive * San Diego, CA. 92128
619-972-1552 * 858-521-7258 * 858-521-7289
Related Posts: Agent Services, Awards and Recognitions, Buyers, Exclusive Properties, Exclusive Properties Agents, Exclusive Properties Offices, Exclusive PropertiesSanDiego.com, Great Real Estate Deals, Just for Fun, Motivational, Rancho Bernardo, Real Estate News, San Diego
More Foreclosures Coming? How Long Do We Have to Wait?
Posted by Ashley Stuart Puetz | Leave A Comment »
Step back in time with us to the summer of 2008, where consumer confidence was shaky, but solid activity was still occurring in the market place. Short sales were increasing because of risky loans that were given to buyers who had low credit scores and no down payment, and foreclosures started to consume the market place. Foreclosures were overwhelming asset managers and banks were taking back homes in record numbers. We could see the writing on the wall, but we had no idea it would be this serious. In preparation for the tsunami of foreclosures that were sure to come, we joined a financial network that specializes in the REO (bank owned) system to gain as much knowledge as possible to assist our clients in navigating this segment of the market.
Since then, a bustling entry-level market has opened up for first time home buyers, who had been shut out of the market due to higher interest rates and unaffordable property values. In January of 2009, first-time home buyers began to see hope in homeownership. The $8,000 home buyer tax credit gave them a reason to jump off the fence. As more foreclosures and short sales hit the market and property values continued to fall with interest rates as low as 4.5%, first-time homebuyers had a new found confidence around February of 2009. We began working with FHA approved first-time homebuyers for the first time in years. Little did we know what the lending industry had in store in the months to come.
Since the government mandated moratorium on foreclosures was lifted, banks began taking back properties in record numbers. The inventory has been absorbed by cash investors and some lucky first-time home buyers, but many now are waiting for the next round of foreclosures. An asset manager at Fannie Mae said he now has 4 files on his desk, which is down from 285 files five months ago. Many of the banks are saying their inventory is down. So what’s next and how long do we have to wait? All we can say is, “if we had a crystal ball, we’d be millionaires by now!”
Below is an excerpt from a letter written by the director of training with Lionsgate Financial Network, of which we are members. We think this letter paints a clear picture of how the face of real estate has changed over the last year and what lies ahead.
“Dear Members-I have gotten quite a few questions lately concerning the fact that you are signing up, and not getting any response. This time, right now, reminds me of two distinct times in my career. I have been selling Real Estate since 1987, and every December I went to work everyday, and prepared myself for the spring. I worked getting my mailing lists together, and got my marketing pieces prepared, and got ready for the inevitable rush that came in the spring. My office was empty, I was almost always the only one working. Everyone else in my office took the entire month of December off.
The other time, was between August of 2007, and April of 2008. I went to work everyday, and spent all day signing up on registries, with VERY little results, no listings, and only a smattering of BPO’s. It was, to say the least, frustrating, but I knew that if I continued on, I would succeed. I have always believed, that if you have a course of action, and it’s the right course of action, that your best alternative if to put your head down, and continue.
That being said, we are in a season of almost NO activity in the REO world. I get 1/4, of the BPO’s I was getting 3 months ago, and in my MLS, REO listings are down 85%.
I talked to my asset manager, at Fannie Mae, and he said he has 4 files on his desk, down from 285, just 5 months ago. My asset managers, at Chase, IAS, Old Republic, all say the same thing…..they don’t have anything on their desks. Another good contact I have, David Parrish from Default School, told me last week, all his banks inventories, are way down as well.
The Obama administration has created artificial moratoriums, by their actions…The banks literally don’t know what to do with there current inventory.
Now where does that leave us?
In the perfect position, I believe…My asset manager at Fannie Mae, said this week, they are getting ready for the inevitable flood of REO’s that they will be receiving. David Parrish said that his banks, are gearing up for a rush between Oct and Jan. IAS (Integerated Asset Services) told me to “get ready”. Bank One, formerly Indy Mac, has begun to hire 4,000 NEW agents. Another company that I can’t mention yet, wants LionsGate to help with the disposition of 2,000 assets a month, starting in as soon as 90 days. Exciting things are about to happen to those that prepare.”
-Larry McKenzie, Director of training, LionsGate Financial
It remains to be seen how long we will have to wait for the next round of foreclosures, but we do know more are on the way. All we can do is stay informed and be prepared for our clients. For more information or questions contact us at our website www.stuartandstuart.com.
Related Posts: San Diego
New Conforming Loan Limits Announced For 2009
Posted by Kevin Kueneke | Currently 3 Comments »
After months of speculation, we finally know what the new 2009 high balance conforming loan limits are for San Diego and other “high cost” areas. The Federal Housing Finance Agency (FHFA) said that the $697,500 number we enjoyed for part of 2008 is dropping to $546,250 in San Diego.
Some areas such as Los Angeles-Orange Counties, San Francisco, San Jose, and Santa Cruz are having their 2009 numbers set at the new maximum of $625,500.
According to FHFA’s press release, the 2009 loan limits were calculated using 115% of median house prices as determined by the Federal Housing Administration (FHA) whereas the 2008 loan limits were calculated using 125% of median house prices.
So what does this mean? It means that anyone currently in escrow in San Diego with plans to borrow more than $546,250 needs to do everything they can to get their loan closed before 12/31/2008 or face significantly higher interest rates. There is almost a 2% interest rate difference between loans less than $697,500 and loans greater than $697,500 (also known as true jumbo loans) because conforming loans are guaranteed by the government (FNMA and FHLMC). Guidelines are also more strict for true jumbo loans than for conforming and high balance conforming loans.
As expected, the Federal Housing Administration (FHA) announced that FHA Jumbo limits will match the high balance conforming limits. The Department of Veteran’s Affairs (VA) said that VA Jumbo loans with zero-down payments will be allowed up to the high balance conforming loan limits through the end of 2011. This is good news for FHA and VA buyers as they will still be allowed to take advantage of these programs for higher priced properties.
Any questions or comments? Please email me at Kevin@MyCWMtg.com
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