Home Financing Archives

Home Financing

Home financing is one of the most complicated aspects of buying, building and/or owning a house. There are so many things to consider that it can be overwhelming. We aim to help you navigate your most pressing questions so you can focus on the joy of home ownership. From construction loans and mortgage rates to pricing and hidden costs, we’ll cut through the noise and give you the answers you need from industry experts.

Must Read Articles About Home Financing :

Searching for That Great Rate: How to Find the Best Mortgage Rate

When it comes to mortgages, there is a lot at stake. Especially for first-time homebuyers. Picking the wrong one can cost you thousands of dollars in interest payments, and negatively impact your financial future. In this article, we’re covering the ins-and-outs of finding the best mortgage, so you can rest easy knowing you made the right decision.

Are There Any Hidden Costs with Building?

Think of a new home estimate with a very low price as an iceberg. Like an iceberg, the misleading price is comprised of two parts: the part that’s visible above the surface and the part that’s hidden below the surface. Some home builders minimize the less obvious expenses just to get your business. Hidden costs may not be visible, but they will still impact your plans.

How to Prepare for Property Taxes When Building a New Home

Purchasing an available, pre-owned home from a real estate listing is much different from building a custom house that includes your most desired amenities, especially when it comes to preparing for your property taxes. Without an exact amount based on historical figures, how will you know how much to save up or roll into your mortgage?

Why New Home Costs Vary When Comparing Square Footage

You’re thrilled to be building a home. Finally you’ll be able to live in your dream house, complete with all the comforts and features you want. You’ve done your basic research, and are starting to get bids. That’s when you run into an unexpected, seemingly-unexplainable puzzle: The cost-per-square-foot conundrum.

Recent Home Financing Articles:

Unwrapping the “Hidden Costs” of Building a Home – Land

One of the first questions that we seem to hear from Customers: What are the Hidden costs? The costs you have in building a home are not invisible you just have to realize what they are. In reality there are no hidden costs it’s just that some are unknown or are variable costs. Here is a list of typical Building Costs you will need to consider: Land Home Site Development Permits Closing Costs Home Owner Association Fee’s LAND Naturally this is an obvious item that... [Read More]

9 Easy Mistakes Home Owners Make on Their Taxes

By: G. M. Filisko Don’t rouse the IRS or pay more taxes than necessary — know the score on each home tax deduction and credit. As you calculate your tax returns, consider each home tax deduction and credit you are — and are not — entitled to. Running afoul of any of these 9 home-related tax mistakes — which tax pros say are especially common — can cost you money or draw the IRS to your doorstep. Sin #1: Deducting the wrong year for property taxes You take a tax deduction for property ... [Read More]

Don’t Miss Home Tax Breaks – Property tax deduction

By: Dona DeZube Property tax deduction You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement. If you bought a house in 2012, check your HUD-1 Settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too. This article provides general information ab... [Read More]

Don’t Miss Home Tax Breaks – Home buyer tax credit

By: Dona DeZube Home buyer tax credit There were federal first-time home buyer tax credits in 2008, 2009, and 2010. If you claimed the home buyer tax credit for a purchase made after April 8, 2008, and before Jan. 1, 2009, you must repay 1/15th of the credit over 15 years, with no interest. If you used the tax credit in 2009 or 2010 and then sold your house or stopped using it as your primary residence, within 36 months of the purchase date, you also have to pay back the credi... [Read More]

Don’t Miss Home Tax Breaks – Vacation home tax deductions

By: Dona DeZube Vacation home tax deductions The rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home. If you’re the only one using your vacation home (you don’t rent it out for more than 14 days a year), you can deduct mortgage interest and real estate taxes on Schedule A. Rent your vacation home out for more than 14 days and use it yourself fewer than 15 days (or 10% of total rental days... [Read More]

Don’t Miss Home Tax Breaks – Energy tax credits

By: Dona DeZube Energy tax credits The energy tax credit of up to a lifetime $500 had expired in 2011. But the Feds extended it for 2012 and 2013. If you upgraded one of the following systems this year, it’s an opportunity for a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes. Biomass stoves Heating, ventilation, air conditioning Insulation Roofs (metal and asphalt) Water heaters (non-solar) Windows, doors, and sk... [Read More]

Don’t Miss Home Tax Breaks – Prepaid interest deduction

By: Dona DeZube Prepaid interest (or points) you paid when you took out your mortgage is 100% deductible in the year you paid them along with other mortgage interest. If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year. But if you refinance to get a better rate and term or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the term of t... [Read More]

Don’t Miss Home Tax Breaks – PMI and FHA mortgage insurance premiums

By: Dona DeZube PMI and FHA mortgage insurance premiums Helpfully, the government extended the mortgage insurance premium deduction through 2013. You can deduct the cost of private mortgage insurance as mortgage interest on Schedule A — meaning you must itemize your return. The change only applies to loans taken out in 2007 or later. What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (usually 20%), the lender requires the mortgage be insured. The prem... [Read More]

Don’t Miss Home Tax Breaks – Mortgage Interest Deduction

By: Dona DeZube Mortgage interest deduction One of the neatest deductions itemizing home owners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can even be a house trailer or boat, as long as you can sleep in it, cook in it, and it has a toilet. Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is ... [Read More]

CALL YOUR LENDER BEFORE YOU HOUSE HUNT

[caption id="attachment_18088" align="alignright" width="75"] Bernie Campanella[/caption] It’s not a big secret that in today’s economy, the lending practices of area banks, mortgage brokers and credit unions seem to change or be under review on a monthly basis. Federal rules and regulations change, local lending practices change, underwriting and appraisal practices are subject to what often seem like arbitrary twists and turns. Whereas in the past, over 3 years ago, you could call you... [Read More]