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

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

these developers are able to build condos & townhomes that will help first time home buyers, low and moderate income buyers, and local workforces find properties near where they work at appropriate prices

While the real estate market is definitely in a bad place in Florida, many big, national banks and big, national builders are feeling the pinch…. some are even hitting the bricks – figuratively speaking.

With announcements that Hollywood Florida based TOUSA and Fort Lauderdale Florida based Levitt & Sons are filing bankruptsy, and that Levitt ceased all construction due to massive debt… it would seem that we’ve seen the end of development in Florida until we absorb what we already have… but that may not necessarily be so!

Now that some of the big boys are hurting, a new breed of smaller, leaner developers are descending on Florida like Snowbirds of Prey.

These developers are well positioned to find abandoned projects, builder close-outs, and distressed projects at bargain prices that are ready to be salvaged.

These new, smaller developers are more nimble and more agile than the big names like D.R. Horton, K. Hovnanian, Toll Bros. and GL Homes. They can buy smaller parcels and still make money on them.

They also have the vision to pull off more interesting projects that have margins that are significantly lower than a big developer’s shareholders require.

Couple with this the terrible brain drain due to the middle class heading for the greener pastures with lower property taxes, these developers are able to build condos & townhomes that will help first time home buyers, low and moderate income buyers, and local workforces find properties near where they work at appropriate prices.

Keep an eye out for these Snowbirds… and if you’re sitting on a project that needs some TLC to get it off the ground, think of them fondly. They might just want to partner with you to make your project a reality!

For the full story, follow this link -o-> Florida Mortgage & Real Estate | Developers heading In and Out 

 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

For buyers who will need 100% financing, builders should make sure to keep an eye on the median home prices in the area

This is a little departure from my normal posts that are mainly informational – call it an Opinion Piece.

The Real Estate Industry in Florida is hurting as evidenced in all the bad news being reported.  It isn’t all bad, as the reporters would like you to believe.  Houses are selling because there are people that need to buy and there are those that are finding bargains already.

Now builders are spending their time marketing value and affordability into their homes… the reverse of the trend when they were marketing luxury and amenities.  Honestly, they should have caught on sooner.

Affordability… Value… Attainable… Steven Webster at the Florida Workforce Housing Network discusses how these new buzzwords are showing up in builders’ marketing efforts.  He cites that Lennar challenged local builders to build affordably and Centex chose the path of becoming Florida‘s leading affordable housing builder. 

This article would not be complete without discussing the other side of the story… the Real Estate Industry has another industry that it works hand in hand with that needs to be a consideration of these builders – the Lending Industry.

You see… the big, production builders builders can control most of the costs related to the homes they are building.  What they can’t control is mortgages…. only the market itself can do that!

My recommendation to builders is to keep in mind what buyers need – affordable payments.  This means making sure that the larger homes stay within conforming lending limits so that the interest rates stay low.  It also means to quit blackballing lenders and mortgage brokers from projects.  The buyer should have free choice of who they use and all the enticements from the advertisements to buy.

For buyers who will need 100% financing, builders should make sure to keep an eye on the median home prices in the area – that will be the lending limit for FHA, Fannie Mae and Freddie Mac 100% loan programs.  Builders could offer to pay closing costs up to 3% of the loan amount as an enticement for $0 down homes.

For more information about this trend, please follow this link to visit my main site: Florida Mortgage | Builders Price your homes appropriately

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

there are 100% loans available both for purchase and refinance transactions.

Did I stutter?  I do mean it… there are 100% loans available both for purchase and refinance transactions.

No… I am not one of those scumbags trying to lure you into a dangerous loan!  If you’ve read my posts at all, you know I’m definitely not about bad loans for good people.

Here’s what I am about… helping people buy the home they want and need… and refinance the loan that is about to start hurting them financially…

These affordable mortgages are FHA and Fannie Mae loans – a.k.a. Government Backed.  They are safe loans with only a few options.

Here are the loan features:

• Full Documentation
• Seller Concessions 
• Reduced PMI
• Up to 100% financing
• 30 or 40 year Fixed Rates 
• and more

So whether you are a first time homebuyer or a homeowner looking to refinance.  The option is available to you to get a great rate – usually lower than you’d expect!

Call now to find out what you need to do to get in on one of these loans. 

If your ARM’s adjustable rate is about to reset, there’s no time like the present!

If you are buying a home, there are some great deals out there with all this inventory!

To read more about these programs and more please follow this link:

Florida Mortgage | 100% Loans are Available

So you’re finally purchasing that new home since the price is down or your ARM Loan’s Adjustable Rate is about to jump so you’re going to finally get a new mortgage.

So you’re finally purchasing that new home since the price is down or your ARM Loan’s Adjustable Rate is about to jump so you’re going to finally get a new mortgage.   Well, you are in luck if you are going to start your transaction right now! 

Why?  This is the ideal time of year to start the process of a Mortgage. 

In Florida, property taxes are paid in arrears.  This means you pay at the end of the year for the prior year.  (Insurance is paid in advance, you pay your policy to cover you for the upcoming year)  Also, you receive a 4% discount for paying your annual property taxes in November. 

So if you close on a mortgage in August, September or October, you end up paying an entire year of property taxes at the closing table!  With Florida property values and our crazy tax system, this can be a hefty sum.  On top of this, you have to "seed" your escrow accounts with approximately 2 months of payments for taxes and escrows. 

To learn how your mortgage broker can help you save money at the closing table, follow this link to my main website to read all about it:

Florida Mortgage | Refinance ~ Purchase ; Money Saving Tips

builders are spending their time marketing value and affordability into their homes

This is a little departure from my normal posts that are mainly informational – call it an Opinion Piece.

The Real Estate Industry in Florida is hurting as evidenced in all the bad news being reported.  It isn’t all bad, as the reporters would like you to believe.  Houses are selling because there are people that need to buy and there are those that are finding bargains already.

 Now builders are spending their time marketing value and affordability into their homes… the reverse of the trend when they were marketing luxury and amenities.  Honestly, they should have caught on sooner.

Affordability… Value… Attainable… Steven Webster at the Florida Workforce Housing Network discusses how these new buzzwords are showing up in builders’ marketing efforts.  He cites that Lennar challenged local builders to build affordably and Centex chose the path of becoming Florida‘s leading affordable housing builder. 

This article would not be complete without discussing the other side of the story… the Real Estate Industry has another industry that it works hand in hand with that needs to be a consideration of these builders – the Lending Industry.

You see… the big, production builders builders can control most of the costs related to the homes they are building.  What they can’t control is mortgages…. only the market itself can do that!

My recommendation to builders is to keep in mind what buyers need – affordable payments.  This means making sure that the larger homes stay within conforming lending limits so that the interest rates stay low.  It also means to quit blackballing lenders and mortgage brokers from projects.  The buyer should have free choice of who they use and all the enticements from the advertisements to buy.

For buyers who will need 100% financing, builders should make sure to keep an eye on the median home prices in the area – that will be the lending limit for FHA, Fannie Mae and Freddie Mac 100% loan programs.  Builders could offer to pay closing costs up to 3% of the loan amount as an enticement for $0 down homes.

For more information about this trend, please follow this link to visit my main site: Florida Mortgage | Builders Price your homes appropriately