Mortgage Insurance, Not a Tax Deduction?


Going forward Mortgage Insurance will no longer be able to be a line item deduction after 12/31/2011. As a Mortgage Insurance Company has reminded us: United Guaranty MI company. “MI tax deductibility is scheduled to lapse at midnight, December 31, 2011, now’s the time to expedite them to retain this benefit for your borrowers who qualify! MI tax deductibility will also lapse for FHA and VA loans, which were extended under the same law as private MI.”

As we found out last week, g-fees for new agency loans will be going up to pay for the two-month payroll tax cut.Under the “unintended consequences” banner analysts were quick to point out that, given the increase is scheduled for ten years, Fannie Mae and Freddie Mac are not going away any time soon unless the government comes up with the money elsewhere. F&F will not absorb this increase, nor will lenders; it will, of course, be passed on to borrowers. (The bill also will raise the annual insurance premium borrowers pay on FHA loans by one-tenth of a percent.) The increased g-fee, which makes it difficult for Congress to work on efforts to shut down Fannie and Freddie, based on current rates and a $200,000 loan, will cost the agency borrower about $11 per month. “These institutions, which have been so costly to Americans and are so necessary to the housing recovery, should not be the piggy bank for future arbitrary tax policy,” Dave Stevens (MBA) said. Due to their government ownership, investors still view their (and FHA/VA) MBS’s as safer investments than those offered by private firms. The law allows FHFA to phase in the fee over two years.
So, if you were lucky enough to close your home loan before 12/30/2011 Congratulations!

*As always seek a qualified CPA who can further assist you.* This is not to be construed as tax advice, informational purposes only!

We are hoping that the House of Representatives will continue to extend this tax credit to home buyers, as this is a benefit when you purchase a home and have less than 20% down payment. Make sure you contact your local Representative, Congressman, Senator, or local delgate. We need to extend this tax credit / deduction! As this will only help our real estate markets

Should you have any questions please contact me.

6 Things to Know Before Getting a Mortgage

Are you ready to shop for your mortgage? It can be an intimidating process, as it’s a very significant investment that can lose you thousands of dollars. In my work as a Lynnwood mortgage loan officer, I’ve identified the biggest and most common mistakes that people tend to make when securing their mortgages; follow these simple tips before diving into the home-buying process, and you should come out of it with a maximum of money and a minimum of stress.
Continue reading “6 Things to Know Before Getting a Mortgage”

4 Common Myths about Fixer-Uppers

Are you in the market for a fixer-upper? Indeed, buying a beat-up old home and improving it yourself can be a good way to save big money on your mortgage, but there are many other factors to consider. Your Lynnwood mortgage loan officer has compiled this list of common misconceptions to help you avoid one of the big money-wasters that frequently afflicts the ambitious do-it-yourselfer.
Continue reading “4 Common Myths about Fixer-Uppers”

9 Questions to Ask Before Hiring a Real Estate Agent

Are you looking to sell your home? One of the most important decisions you can make is which agent to hire. A bad agent can lose you thousands of dollars and give you nothing but grief, whereas a good agent can move your home quickly, conveniently, and as close to your asking price as possible.

In my work as a Lynnwood mortgage loan officer, I’ve developed a good sense of what makes an effective realtor. When it comes time for you to select an agent, try using this simple, nine step process to screen your potential representatives.
Continue reading “9 Questions to Ask Before Hiring a Real Estate Agent”

9 Ways to Avoid Common Buyer Traps

As a Lynnwood mortgage loan officer, I like to think that I’m one of the few people in the real estate world you can really, truly count on to be on your side. While you can generally expect lenders and sellers to be out to increase their own profits, and even the most scrupulous realtors have to split their loyalties between you and the selling party, the mortgage loan officer is the one whose job is to keep the money in your pocket and the stress out of your mind. To this end, I’ve compiled the following list of common traps that you, as a buyer, may face when it comes time to shop for a new home. Don’t stumble, don’t snag, and don’t be taken advantage of ever again when you follow these nine simple steps!
Continue reading “9 Ways to Avoid Common Buyer Traps”

VA Home Loan – Purchase or Refinance

VA Home Loans, for me personally, are a true pleasure to work with, as they allow me the opportunity to meet all types of service men & women who acted on a core principle belief — honor!  My father had served over twenty-one years in the Air Force, and it is a pleasure to have a way to thank military personnel like him for their years of service.

I am so passionate about helping our Military Personnel with a VA Home Loan because it allows the active, retired or veteran military personnel receive one of the most stable loans with no monthly mortgage insurance.

Depending on your eligibility for a VA loan, there could be no funding fee.  This means you have or are receiving some disability benefit from the Department of Veteran Affairs.

Many times I have heard from a person who is wanting to refinance a home loan, and I will find out that he or she had served in our Armed Forces.  I then ask them if they would like to do a VA Loan, and they say that they used it already.  Well, I am here to tell you that you can use it again! While it is true that you can only have one VA loan active at a time, you may have another opportunity to use it again.  We will need to dig further on this, but it can happen. Each person’s level is different.

These are rewarding loans for me, personally, as I had stated before.  Should you need more information, please feel free to contact me or you can click this link for one of the best Mortgage Calculators for a VA Home Loan: Calculator. Please note the pull down bar as this will allow for several options pertaining specifically for our veterans.

Here is more added info pertaining to VA Rules:

Thank you for reading this.  I hope it has been a big help to you.

The Back to Work Program Helps Home Buyers with Financial Problems

Have you been having trouble buying a new home due to a financial hardship?  If so, the Federal Housing Administration  also known as “FHA” may have some good news for you.  The Back to Work program, effective as of the fifteenth of August 2013, is providing struggling home buyers with the aid they need to get back in the housing market and secure the home of their dreams.

Under these new guidelines, the usual waiting periods that follow a derogatory credit event has been reduced.  Recent events have inspired the FHA to acknowledge that a bad credit history is occasionally out of an individual’s reasonable control, and doesn’t necessarily reflect your ability to make mortgage payments.  Therefore, if you’ve experienced any of the following over the past few years, you may be eligible to get a new FHA-insured mortgage to become a homeowner again:

  • Pre-foreclosure sales
  • Short sales
  • Deed-in-lieu
  • Foreclosure – was 3 years – now only 1 from release of lien on title.
  • Chapter 7 bankruptcy – was 2 years – now only 1 year from discharge
  • Chapter 13 bankruptcy
  • Loan modification
  • Forbearance agreements

These timelines have been shortened for  people who have suffered such hardships should be prepared to demonstrate that their ability to make payments was caused by a loss of employment or other such significant loss of income that was beyond their control by 20% or greater.  The potential borrower must then demonstrate a recovery from the hardship, and complete housing counseling with an HUD-approved agency.  If the FHA is satisfied, you will once again be able to buy a home with the current market interest rates and home prices.

For more information on the Back to Work program, you can contact Lynnwood mortgage lender / broker David Haley.

House-Flippers Gain Confidence in the High-End Market

For a long while, the luxury real estate market has been a no-man’s land for investors.  It was hard enough to unload a cheap home without losing money, and the prospect of buying a mansion to fix up and flip for a profit simply was not in the cards.  However, recent years has seen an improvement in the market, and ambitious property investors are once again working to buy, sell, and make out like bandits in the world of high-end houses.

The up and coming players in this recovering field have been the money lenders.  While banks remain reluctant to provide house-flippers with the short-term, quick financing that they need, private lenders like Jan Brzeski have been stepping up to fill the need.  Thanks to her loan, realtor Scott Ryan was able to buy a house for $1.5 million, improve the property for $600,000, and put in on the market for $3.3 million.  In all-too recent memory, this house might have sat on the market for several years and several cuts in the asking price, but the current market is giving them optimism to secure a sale within a week.

According to Brzeski, he was originally wary of the high risk associated with high-end real estate investments.  However, after pouring roughly $2.5 million into a venture back in 2011, he was pleased to discover that the realtor was met with a line of all-cash offers as soon as it was placed on the market.  The property sold for $3.5 million, and Brzeski was sold on mansion-flipping immediately.

The causes behind this recent recovery in the high-end housing market seem to be based in the freshly robust stock market.  With a slew of wealthy individuals suddenly flush with extra money, many of them are gaining confidence in buying the houses of their dreams.  House-flippers are therefore gaining confidence that their riskier investments will pay off more quickly and more profitably.

Since 2011, flips of houses valued at upwards of $1 million have increased by about forty percent across the country.  Between 2011 and 2012, such flipping jumped 456 percent in Phoenix, 867 percent in Orlando, and 730 percent in Las Vegas, according to RealtyTrac.  These figures are based off of high-end homes that were bought and sold within six months.

Read the original article here.

Home Affordability Remains Strong Despite Price Rises

Black Knight Financial Service took a look back on January’s home affordability and foreclosure metrics, and made some interesting discoveries. It would appear that foreclosure starts reached a twelve month high at the start of 2015, both in terms of first time foreclosures and repeats. As of then, repeat foreclosures accounted for better than half of the total foreclosures.

Meanwhile, home affordability, despite two years of rising prices, remains better than what we saw prior to the housing bubble. The low interest rates at the time served well to offset price increases so that the mortgage-to-income ratio average throughout the United States was at 21%. This is an improvement over the 26% average observed from 2000-2002, but it’s still up from the 17.6% low in October of 2012.

Here in Washington state, we are slightly above the average at 21.3%. However, this represents an improvement of 6.5% from 2000-2002, exhibiting a greater-than-average increase of mortgage affordability.

March Starts with a Jump in Mortgage Rates

The big news as we start the month comes from pharmaceutical giant Actavis, which announced back in November that it would buy Allergan for $66 billion. In order to raise the money for this purchase, the company issued a bond deal for something in the area of $27 billion. This is the second biggest corporate bond deal ever made, beaten only by Verizon’s $47 billion deal.

This is a lot of debt to hit the market at once. To give it some perspective, consider that the last deals to have made significant waves amounted to only about $11 billion and $6 billion. Since these corporate bonds have an indirect link to the bonds that dictate mortgage rates, all of this debt is bad news for the housing market.

Unfortunately, with big-ticket events on the horizon, we likely cannot expect the market to correct itself anytime soon.

Schedule a Consultation

Please let us know what's on your mind. Have a question for us? Ask away.