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Beat the Rising Interest Rates!

by Jon Smith, CRB, CRS, GRI

Mortgage Rates have risen to the highest level since 2014, with a likely hood to keep increasing through out the year. What does this mean for you? Acting sooner than later will make sure that you are locking in a lower rate.

Rates have already passed 4% in the last months, property economists have predicated that mortgage rates may rise to as high as 5.5% by 2018. This small percentage difference may not seem like a lot, but over the life of a mortgage, this can mean tens of thousands of dollars to the buyer. 

Following the increase in mortgage rates, home prices are predicted to see an equal increase in 2017. This means that home buyers will see a double hit in the cost of owning a home in the next year. Combining higher mortgage rates with home values going up, it will become more difficult to buy that home you are looking for. So beat the increase, go find your future home! 

The Benefits of a Pre-Approval

by Jon Smith, CRB, CRS, GRI

Whether you are looking to buy a house soon, or buy a house in the near future, applying for a pre-approval is a great way to prepare for the right house at the right time. By getting pre-approved, possible buyers can have all their financial concerns and questions answered before the special time comes to buy a new home. There are many reasons to get pre-approved:

  • Understanding total monthly costs, not just a monthly mortgage cost. Including tax rates, insurance, mortgage cost, possible HOA, property tax, and (depending on down payment) Private Mortgage Insurance. This will help the buyer narrow down a price range of a home they feel comfortable buying. 
  • Planning for down payment, closing costs, and any fees that are involved in buying a home. There is more than just the down payment on a house, and being prepared for all the cots makes the real estate purchasing process that much more stress free. 
  • Getting all the paperwork needed to apply for a mortgage together. Buying a house can be time sensitive, and the last thing you want to do is not be able to provide the correct paperwork needed to buy a home. 
  • Helps the seller know that they are choosing a serious buyer who already knows they are ready to purchase a home. 

Among the listed reasons, pre-approval to a home mortgage makes sure you are serious buyer! 

Deductions For Homeowners

by Jon Smith, CRB, CRS, GRI

With the new year also comes tax time, and homeowners may be able to deduct many home-related expenses. Keep in mind these tax breaks are available for any type of home whether it be a mobile home, single-family residence, townhouse or condominium.


Deducting Loan Points Paid on a Purchase or Refinance
The points you pay on a loan for a
home purchase are tax-deductible for the year you made the purchase. You can deduct the points you paid as well as those a seller paid on your behalf if you meet the following criteria:

  •   The loan is secured by your primary residence
  •   The loan was used to buy, improve or build the home
  •   Paying points is a common practice in your geographic area
  •   The points are calculated as a percentage of the loan principal

First-time home buyer credit.  A $7,500 tax credit is available to eligible taxpayers must have bought, buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. and before July 1, 2009.  You are considered a first-time home buyer as long as you did not own a home during the three years leading up to the purchase of your new home.

Moving expenses. If a move is connected with taking a new job that is at least 50 miles farther from your old home than your old job was, you can deduct travel and lodging expenses for you and your family and the cost of moving your household goods. 

Deducting Real Estate Taxes. Real estate taxes are deductible in the year paid. They are generally reported on Form 1098, Mortgage Interest Statement, the annual statement from the financial institution holding your mortgage, or on your county real estate tax assessment statement. You should also deduct any prorated taxes collected from you at closing. These amounts are not always included on Form 1098, but may be itemized on your real estate closing statement.

Make sure you’re not missing out on important home-related tax deductions. Everyone has a different situation and you may actually qualify for other deductions you were not aware of, so always check with your tax advisor to find out which deductions apply to you.

Displaying blog entries 1-3 of 3

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Photo of Jon Smith, CRB, CRS, SRES, SFR Real Estate
Jon Smith, CRB, CRS, SRES, SFR
Iowa Realty
3521 Beaver Ave.
Des Moines IA 50310
515-240-2692
Fax: 515-453-6404
 

 

 

Licensed in the State of Iowa