IRS Tax Deductions from your Mortgage

As tax time is upon us and with all the talk about recession, politics and the housing market, most people are not focused on the fact that we are only ten days from tax day.

So if you are a procrastinator as is the American-way, remember to plan for some of your Mortgage and Real Estate related tax deductions to save some money this year.

Here are a few places to save:

1) Discount Points - Lender Discount Points are seen by the IRS as pre-paid interest charges. 

2) Pre-paid Interest - your closing statement shows prepaid interest depending on how many days you will be in the property in the month you close.  

3) Pro-rated Property Tax any property tax you pay at the closing table is deductible

4) Origination Points - Broker fees or Points are also considered pre-paid interest.

5) PMI/MIP - Mortgage Insurance on a loan that is over 80% Loan to Value (LTV) is deductible

Where to consult your Accountant for sure:

6) HELOC / Equity Line - interest on your 2nd Mortgage or Home Equity Line of Credit may be deductible. 

7) Second Home - this is a grey area.  Your accountant knows the rules on deducting mortgage interest on 2nd home mortgages.

8) Depreciation - Investment properties only!!  !

My Professional Advice:

You have your closing package from when you closed your property neatly filed away, right? (nudge nudge)

Get it out and take it with you when you visit your tax preparation specialist or CPA.  Make sure to have your Accountant review your closing statement and IRS Form 1098 that you will receive from your lender in the mail.

Your accountant will then make sure you get credit for all your deductions.

To get the full article, follow this link -o-> Florida Mortgage | IRS Tax Savings on your HUD-1

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More Florida Real Estate Industry News You Can Use from
David A. Podgursky, MBA
TheMortgageGoToGuy!!
Your Source for Residential and Commercial
Mortgage Loans in Florida

Mortgage Guideline Changes and You

Here is a brief video lesson on how the Mortgage guidelines changes will affect Celebration Florida borrowers and how these guideline changes will affect you.

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Mortgage Fraud 101

Are you in trouble? Do you need information regarding foreclosure? Freddie Mac just put out this video about Mortgage Fraud. They also has a webpage for Avoiding Mortgage Fraud.

Borrowers Get Year-End Gift from Fed

Borrowers Get Year-End Gift from Fed

The Federal Reserve lowered interest rates today for the third straight meeting of the FOMC. What does this mean to Celebration Buyers? Well, if you're looking to capture the best Celebration home loan rates, you need to act now. For those with an application already in process, you should probably lock your rate as soon as possible. And, for anyone who has yet to begin a loan application, what are you waiting for?

Rate Hikes on the Horizon

Despite this latest cut from the Fed, rates for many borrowers could actually increase soon. Why? Because Fannie Mae and Freddie Mac have recently announced 2008 Loan Level Price Adjustments (LLPAs) that are already starting to show up on lenders' rate sheets. LLPAs are automatic “penalties” based on credit scores, which tack on costs in the form of points or higher rates for most anyone with a FICO less than 720. Call me, and I will give you all the details.

Back to The Fed

But, let's get back to the good news. The Fed cut the Federal Funds Rate, an overnight lending rate that banks charge each other and which influences the amount of interest consumers pay for various types of debt, such as credit cards, home equity lines of credit, and auto loans.

Since September 18th, the Federal Funds Rate has gone down 100 basis points. If you have a loan that is tied to the Prime Rate, this means your rates have been lowered a full point. But, for those seeking to obtain new financing, you must act now to take advantage.

No Time to Wait

Following each of the last two interest rate cuts by the Fed, home loan rates jumped higher a couple of weeks later. Remember, lower short-term rates are inflationary by nature, and cause consumers to spend more money. Because of this, long-term rates tend to increase as bond holders hate inflation and command higher rates as a result in order to protect their investments.

Because of these pressures and the upcoming Loan Level Price Adjustments, interest rates are going to rise. You need to call me now in order to secure the best deal you may see for some time in Celebration Florida. You'll be glad that you did.

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This information provided by:

Brian Brady,Mortgage Planner
World Wide Credit Corp
Phone: (858) 503-2318
Fax:(858 -605-4230
bbrady@worldwidecredit.com
www.MortgageRatesReport.com

Florida Mortgage | Subprime Bailout ~ Preliminary views of the plan

I had to at least make a mention of the new plan to bail out the Subprime Mess and I was in a Clint Eastwood Western sort of mentality. So, I will relate my feelings to the Good the Bad and The Ugly.

I think that in all, it will help some people... but I just don't believe the way that things are being carried out are in the best interest of the masses for more than one reason.

The Good - There are a lot of loans that are about to jump, some even double. This Congressional Bailout of these borrowers will help those people who are about to get a shock... a BIG shock.

The Bad - OK... so these borrowers have some relief.

Now the big test is will they learn their lesson from the scare and start a financial plan to get themselves on track for the big three issues for a loan application so that they can refinance in the future.

They need to work on:

• Credit
  
• Income
• Assets
  
• Also - Equity

The Ugly - now this is where I'm going to be bordering on ranting.

Congressman Barney Frank - are you reading this??

This plan is by far one of the most dangerous pieces of legislation in US History. This was bred from ignorance and arrogance.

I do not care how bad this problem is or will become...

The Mortgage Industry is built upon the freely moving, market driven Mortgage Backed Securities Market. Rates, programs, etc are all based on this FREE market that is without government interference!

The US Government has NO business regulating this market and industry in anyway.

YES! The Homeowners are hurting... but they have been in this position for at least a year and have heard enough news that this storm was coming. Ohh... now I'm unpopular...

But... there are investors around the world who bought into these investments. They made the decision to back risky mortgages and who's right is it to tell them that they do not deserve the returns that they signed up for??

No ones! Especially not the Federal Government of the United States.

For the FULL ARTICLE follow this link to -o-> Florida Mortgage Subprime Bailout ~ Preliminary views of the plan

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More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
TheMortgageGoToGuy.com
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Looking for ways to save that downpayment?

Here is a great way to start saving for your Orlando Florida home - your coffee drinking habit could be eating away at money that you could be saving for that down payment.

Do you go out and get yourself Starbuck or Dunkin Donuts coffee everyday in the Orlando area instead of drinking the coffee in the office or from home?

Do you realize that if you are purchasing two or three cups of coffee a day that you could be saving a considerable amount of money if you make it yourself and just drink the office coffee instead of purchasing it at a local coffee shop.


See for yourself the savings based on your consumption at this helpful calculator Coffee Savings Calculator.

Call me today to start your home buying search!

Colleen Kulikowski, Realtor

(407) 288-0017

Getting Ready to Sell?

There are many things that you need to do to prepare for the sale of your Celebration Florida home. Things are changing in the Celebration market and there are several things that you should know to make this process as stress free as possible. They include understanding the current market absorption rate, competitive homes currently on the market, and things to do like Staging to make your home ready for sale. But first let's talk about why you are selling and what you plan on doing once you sell your property.

Are you going to purchase another home? Are you up-sizing or downsizing? Probably the most over looked thing a seller forgets to do when getting ready to sell is checking to make sure that they can purchase another property. Some important financial questions you should ask yourself:

• Can I qualify for Mortgage for my desired next home?
• Is my credit in order?
• Should I get pre-approved for my purchase before selling my home?

The Orlando Avenue Top Team has a wonderful network of financial experts that we can refer to you to start this process...