Money & Finance

Mortgage Insurance Becomes Tax Deductible

Mortgage insurance will become tax deductible in 2007 thanks to last minute passing of a law by the 109th Congress. Mortgage insurance is charged to borrowers who have less than a 20 percent down payment for govenment and private mortgages. The new law will allow mortgage insurance premiums to be treated like mortgage interest on tax returns saving Americans a considerable amount of money each year. Full story…

If youo are thinking of buying a home in Vermont or would like more information on how this new law effects your buying powewr, visit my website or give me a call. I’m here to help!

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Interest Rates Decline For Fifth Consecutive Week

FreddieMac.com reports long term interest rates declined this week for the fifth consecutive week. The average rate on a 30-year fixed rate mortgage is 6.14 percent for the week ending Nov. 30. Down from 6.18 percent last week.

Rates like this make buying a new home for Christmas a great idea. Visit ISellVermontRealEstate to view all Ludlow and Okemo Mountain homes for sale.

Land Rover Tax Advantages

Small business owners can take advantage of accelerated tax depreciation benefits just by purchasing a new Land Rover before December 31, 2006. See your tax advisor to determine if you are eligible for this benefit. Visit landroverusa.com for details.

There are also tax advantages to owning Vermont real estate. The interest you pay on the mortgage for your personal residence is tax deductible. Are you thinking of buying central Vermont real estate? Visit ISellVermontRealEstate.com to view all Vermont real estate listings.

What The Fed Said – A Translation

If you are one of those people who keeps an eye on interest rates and the stock market, and listens intently to what happens on Wall Street and with Federal Reserve, you will appreciate the post on BankRate.com, What the Fed said: A Fed translation.

No need to learn Fedspeak, it has been translated for you!

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30 Year Mortgage Rates Drop Again

Vermont 30-year fixed mortgage rates drop for 5th consecutive week.

BankRate.com is reporting a drop in mortgage rates for the 5th consecutive week. Rates are now the lowest they have been since the end of March. The gap is narrowing between the fixed-rate and adjustable-rate mortgages, making refinancing a sensible option for many homeowners.

If you are thinking of buying a Vermont home and would like to learn more about interest rates and how they effect your buying power, contact me or visit my website. I’m here to help!

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Are Settlement Costs In Vermont High?

Are Settlement Costs In Vermont High?

Not according to BankRate.com’s annual closing cost comparison survey. In this year’s survey, Vermont ranked 28 in comparison to the other states. Good faith estimates were obtained from 10 lenders in all 50 states. Total cost comparions were based on lender, title and settlement fees.

New York ranked #1 for the second year in a row with costs totalling $3,887. Missouri was last with $2,713 in costs. Vermont’s settlement costs totaled $2,950. Vermont’s 28th place ranking is up from 38 in 2005.

Getting the lowest settlement costs possible is a matter of shopping around. Contact me if you are in the market for a home. I am happy to counsel you as to the questions to ask a lender to get the best possible deal.
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Thinking of buying or selling a home in Vermont? Visit my website to view all real estate listings, get the current market value of your home, free reports and more.

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New Affordable Housing Program

The Vermont Housing Finance Agency (VHFA) is beginning a new $10 million program making owning a home in Vermont a reality for many buyers.

The program will offer 4.75 percent interest rates to eligible applicants. Contact me for eligibility requirements. Also, visit my website to view all real estate listings. I’d like to help make your dream of home ownership come true.

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Modernizing FHA Loans

The Expanding American Homeownership Act has been passed by the House Of Representatives bringing FHA into the 21st Century and offering hard-working Americans a variety of safe homeownership options at a fair price. This legislation will:

1) Eliminate the current statutory three percent minimum down payment, reducing a significant barrier to homeownership. FHA’s existing down payment requirement does not meet the demands of today’s marketplace, where most first-time homebuyers put down two percent or less. The “new” FHA would offer a variety of down payment options.

2) Create a new, risk-based insurance premium structure for FHA that would match the premium amount with the credit profile of the borrower. It would replace the current structure, in which there is standard premium amount for all borrowers, while still protecting the soundness of its Insurance Fund. FHA would have the flexibility to charge a lower premium for low-risk borrowers, and to charge higher-risk borrowers a slightly higher premium.

3) Increase and simplify FHA’s loan limits. FHA’s loan limit in high-cost areas would rise from 87 to 100 percent of the GSE conforming loan limit and in lower-cost areas from 48 to 65 percent of the conforming loan limit. This change is crucial in today’s housing market. In many areas of the country, the existing FHA limits are lower than the cost of new construction, eliminating FHA financing as an option for buyers of new homes in those markets. FHA has simply been priced out of the market in other areas, such as California, where FHA insured only about 5,000 home mortgages in all of 2005, down 95 percent from 109,000 in 2000.

HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans. More information about HUD and its programs is available on the Internet at www.hud.gov.
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If you are thinking of buying or selling Vermont real estate or have questions about FHA loans, visit my website or send me an email. I can help!

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Important Tax Information for Vermont Home Owners

Important Tax Information for Vermont Home Owners
(In Vermont the deadline is April 18 this year)

The April 18 tax deadline is only a few days away and hopefully you are well on your way to completing your tax return and you won’t be one of those people in line at the post office late at night on April 17!

If you purchased a home in 2005, you will need the HUD-1 Statement from the closing on your new home, when calculating your taxes. This is the document itemizing the monies at closing. Your accountant or tax advisor will be able to tell you which of your closing costs are tax deductible.

The mortgage interest that is reflected on the HUD-1 is not calculated in the interest reflected on your year end statement that you will receive from your mortgage company. So, be sure to add the interest in the HUD-1 to other interest paid for the year.

If I can help with any other questions concerning the purchase of your home last year or if you are considering buying a home this year, give me a call, 802-226-8022. I’m glad to help. Or visit my website, www.ISellVermontRealEstate.com. You will find a wealth of information there.