The Consumer Confidence Index rose in February to its highest point in three years as Americans are feeling more optimistic about their income prospects and the direction the economy is headed.
The Conference Board says its Consumer Confidence Index climbed to 70.4 this month, up from a revised 64.8 in January, hitting its highest level since February 2008. It was the index's fifth consecutive monthly increase.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/02/22/national/a070307S09.DTL
Tuesday, February 22, 2011
Wednesday, February 16, 2011
FHA Mortgage Insurance set to go up April 18th!
FHA Mortgage Insurance is set to go up from 0.9% to 1.15% on April 18th which will increase your monthly payment. If you know anyone looking to buy with an FHA loan please tell them they must be in contract and have an FHA case number assigned prior to April 18th!
What does this mean for you?
On a $200,000 purchase you will be paying $40 more every month. If you know anyone that might be looking to buy with an FHA loan then please make sure they are aware of this coming change. Thank you.
What does this mean for you?
On a $200,000 purchase you will be paying $40 more every month. If you know anyone that might be looking to buy with an FHA loan then please make sure they are aware of this coming change. Thank you.
Friday, February 4, 2011
Tax Benefits of Home Ownership
Home mortgage interest deduction: The interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home is deductible as an itemized deduction. In the early years of a home loan most of the payments consist of interest, so this deduction is particularly substantial during the first years of homeownership.
Depending on the state a buyer lives in and his or her tax bracket, this deduction can reduce the cost of borrowing by one-third or more.
Home equity loan deduction: Homeowners can borrow up to $100,000 against the equity in their home and deduct the interest as an itemized deduction. The money can be used for any purpose, such as paying off high-interest credit card debt. In contract, the interest on credit card debt is not deductible.
Property tax deduction: Homeowners also get to deduct from their federal income taxes the state and local property taxes they pay on their home. This is another itemized deduction that renters don't get.
Deductible homebuying expenses: Various closing costs ordinarily involved in a home purchase are also deductible as itemized deductions, including loan origination fees (points), prorated interest on a new loan, and prorated property taxes paid at settlement.
$250,000/$500,000 home-sale exclusion: Perhaps the greatest tax benefit of owning a home comes when a person sells it at a profit. Homeowners who lived in their home for two of the prior five years prior to its sale need pay no income tax on a substantial amount of their profit -- $250,000 for single homeowners and $500,000 for married homeowners who file jointly. This exclusion can be used once every 24 months.
Depending on the state a buyer lives in and his or her tax bracket, this deduction can reduce the cost of borrowing by one-third or more.
Home equity loan deduction: Homeowners can borrow up to $100,000 against the equity in their home and deduct the interest as an itemized deduction. The money can be used for any purpose, such as paying off high-interest credit card debt. In contract, the interest on credit card debt is not deductible.
Property tax deduction: Homeowners also get to deduct from their federal income taxes the state and local property taxes they pay on their home. This is another itemized deduction that renters don't get.
Deductible homebuying expenses: Various closing costs ordinarily involved in a home purchase are also deductible as itemized deductions, including loan origination fees (points), prorated interest on a new loan, and prorated property taxes paid at settlement.
$250,000/$500,000 home-sale exclusion: Perhaps the greatest tax benefit of owning a home comes when a person sells it at a profit. Homeowners who lived in their home for two of the prior five years prior to its sale need pay no income tax on a substantial amount of their profit -- $250,000 for single homeowners and $500,000 for married homeowners who file jointly. This exclusion can be used once every 24 months.
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