If selling your property and are not upside down, consider holding either a first mortgage or a second mortgage in either a residential or a commercial sale. Providing this financing tool in today's market condition can be to your advantage.
The primary advantage is the deferral of taxes due. Sellers are taxed as the principal is received. This allows you to spread the tax bill over several years.
Further advantages can include
· An interest rate that provides a higher return on investment.
· Market position for a higher-than-average price.
7/22/2010
7/19/2010
New Financial Reform Will Impact You
The new financial reform law that was just enacted is massive and two of its main components could negatively impact buyers in the future.
It will be harder to qualify for a mortgage and even when the economy improves lenders will find it difficult to loosen their guidelines. The new law requires lenders to document a borrower's income but currently has no specific guidelines for the terms under which loans can be made. This uncertainty will cause the lenders to tighten their guidelines in order to stay in compliance with the law.
Mortgage rates will increase as two sections of the law are implemented. The law requires lenders to keep a 5% stake in the mortgages they originate unless the loans meet a certain criteria. This will cause anyone with less than perfect credit and excellent present economic position will be paying higher rates.
The Fannie Mae and Freddie Mac future is still uncertain. Depending on when and how this issue gets resolve will affect how high the mortgage rates could end up.
Now more than ever is time to purchase your home.
It will be harder to qualify for a mortgage and even when the economy improves lenders will find it difficult to loosen their guidelines. The new law requires lenders to document a borrower's income but currently has no specific guidelines for the terms under which loans can be made. This uncertainty will cause the lenders to tighten their guidelines in order to stay in compliance with the law.
Mortgage rates will increase as two sections of the law are implemented. The law requires lenders to keep a 5% stake in the mortgages they originate unless the loans meet a certain criteria. This will cause anyone with less than perfect credit and excellent present economic position will be paying higher rates.
The Fannie Mae and Freddie Mac future is still uncertain. Depending on when and how this issue gets resolve will affect how high the mortgage rates could end up.
Now more than ever is time to purchase your home.
7/16/2010
Missing 8,000 Dollar Tax Credit Dateline May Have You Coming Out Ahead
If you missed the April 30 dealine for a housing tax credit you may be saving more than the $8,000 you could have received.
Some price range homes and neighborhoods are dropping prices and offering special promotions worth more to the buyers than the missed tax credit.
Interest rates have continue to dropped. Over the life of a loan a homeowner could save more than the value of the tax credit.
Finally, those shopping for new development properties are finding bargains as some builders promote incentives to keep the traffic moving.
Some price range homes and neighborhoods are dropping prices and offering special promotions worth more to the buyers than the missed tax credit.
Interest rates have continue to dropped. Over the life of a loan a homeowner could save more than the value of the tax credit.
Finally, those shopping for new development properties are finding bargains as some builders promote incentives to keep the traffic moving.
7/14/2010
Predatory Lending
Major financial institutions through their lobbiest have control being held accountable for the foreclosure epidemic in our economy. They deflect their responsability by blaming the collapse of the economy on the borrowers that have defaulted. The financial failure of the American households has made the bottom line very profitable for the banks too big to fail.
These banks operate by passing other people's money back and forth among each other, until they reach the right balance of good and bad loans that causes the pool to default and buy insurance that pays off upon default.
They loaned money based on terms that would produce certain failure within any economic fluctuations. Without predatory lending, there would have been far fewer foreclosures and milder economic challenges.
These banks operate by passing other people's money back and forth among each other, until they reach the right balance of good and bad loans that causes the pool to default and buy insurance that pays off upon default.
They loaned money based on terms that would produce certain failure within any economic fluctuations. Without predatory lending, there would have been far fewer foreclosures and milder economic challenges.
7/12/2010
How Does Your Mortgage Affect Your Finances
A debt that is unavoidable to many families is a mortgage. A common question is whether to pay it off as quickly as possible.
The answer depends on each person's financial situation. A mortgage can actually be a blessing to some. Mortgage interest is tax-deductible. The benefit is greater the higher the interest bracket and net worth.
Calcuate your mortgage's effective rate by subtracting your tax rate from 100 and multiplying that number by the interest rate. For example, a 28% tax bracket with a 6% mortgage would result in (.06 X 72) to equal the equivalent of a 4.32% mortgage rate after considering tax savings if itemized.
A situation that makes paying off a mortgage attractive is for someone at risk of bankruptcy. Many states offer protection from creditors seizing a home to pay debts.
Money taken out for a mortgage could reduce net worth later in life at time of retirement. While we can get a loan for a house, there are no loans to finance retirement.
So you need to plan your finances considering the stages of your life.
The answer depends on each person's financial situation. A mortgage can actually be a blessing to some. Mortgage interest is tax-deductible. The benefit is greater the higher the interest bracket and net worth.
Calcuate your mortgage's effective rate by subtracting your tax rate from 100 and multiplying that number by the interest rate. For example, a 28% tax bracket with a 6% mortgage would result in (.06 X 72) to equal the equivalent of a 4.32% mortgage rate after considering tax savings if itemized.
A situation that makes paying off a mortgage attractive is for someone at risk of bankruptcy. Many states offer protection from creditors seizing a home to pay debts.
Money taken out for a mortgage could reduce net worth later in life at time of retirement. While we can get a loan for a house, there are no loans to finance retirement.
So you need to plan your finances considering the stages of your life.
Extension Of Tax Credit Closings And Flood Insurance For Home Buyers
Congress passed two bills that extend the home buyer tax credit closing deadline and reauthorize the National Flood Insurance Program. Both were extended to September 30 which will help provide stability to real estate markets.
HR 5623 the Home Buyer Assistance nd Improvement Act, applies the home buyer tax credit closing deadline extension only to home buyers who have ratified contracts in place as of April 30, 2010 but could not close before June 30.
HR 5569 reauthorizes extension to the National Flood Insurance Program allowing currently stalled transactions to move forward. The bill is retroactive and covers the lapsed period from June 1, 2010 to the date of enactment of the extension. Any new policy applications or renewals that were signed and submitted during the lapsed period will be effective from the date of application. In the case of waiting periods, the waiting period will start from the date of application.
HR 5623 the Home Buyer Assistance nd Improvement Act, applies the home buyer tax credit closing deadline extension only to home buyers who have ratified contracts in place as of April 30, 2010 but could not close before June 30.
HR 5569 reauthorizes extension to the National Flood Insurance Program allowing currently stalled transactions to move forward. The bill is retroactive and covers the lapsed period from June 1, 2010 to the date of enactment of the extension. Any new policy applications or renewals that were signed and submitted during the lapsed period will be effective from the date of application. In the case of waiting periods, the waiting period will start from the date of application.
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