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Tax Deductions for First Time Homeowners

By: Chris Castillo

If you are looking to buy a house you may want to know what tax deductions you receive as a first time homeowner.

There are several standard deductions you receive as a homeowner. To deduct expenses of owning a home, you must file Form 1040 and itemize your deductions on Schedule A (Form 1040). If you itemize, you cannot take the standard deduction.

Now your first question may be what does the IRS define as a home? Your first home may be a house, condominium, cooperative apartment, mobile home, houseboat, or house trailer.

If you took out a mortgage (loan) to finance the purchase of your home, you probably have to make monthly house payments. Your house payment may include several costs of owning a home. Generally, your real estate taxes and home mortgage interest are included in your house payment. The only costs you can deduct are real estate taxes actually paid to the taxing authority and interest that qualifies as home mortgage interest.

Real estate taxes are the annual tax on the value of real property. You can deduct the tax if it is based on the assessed value of the real property and the taxing authority charges a unique form rate on all property in its jurisdiction.

Home mortgage interest is the interest you pay on a loan secured by your main home or a second home. The loan can be a first or second mortgage, a home improvement loan, or a home equity loan.

Generally, you can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040).

Deductible sales taxes may include sales taxes paid on your home (including mobile and prefabricated), or home building materials if the tax rate was the same as the general sales tax rate.

*Note that if you elect to deduct the sales taxes paid on your home, or home building materials, you cannot include them as part of your cost basis in your home.

Here are some expenses, which may be included in your house payment that cannot be deducted:
- Fire or homeowners insurance premiums.
- FHA or other mortgage insurance premiums.
- The amount applied to reduce the principal of the mortgage.

You cannot deduct any of the following items:
- Insurance, including fire and comprehensive coverage, and title and mortgage insurance.
- Wages you pay for domestic help.
- Depreciation.
- The cost of utilities, such as gas, electricity, or water.
- More settlement costs.
- Forfeited deposits, down payments, or earnest money.

Note that you can deduct some of these items if you operate a home business. For example, you are allowed to use depreciation on your personal residence if you have a home office.

Author Resource: Chris Castillo is committed to providing free real estate tax related information on the web. Get more information concerning real estate taxes at www.real-estate-owner.com

Article From RealEstateArticles4U.com

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4 Pieces Of Reverse Mortgage
Information About HECM Eligibility
And Repayment

By: Juhani Tontti

According to the reverse mortgage information, the loan sum is determined based on your age and the value of your home.

The HECM program sets limits to your loan costs and actually FHA controls, that the lenders will meet their obligations.

• Is HECM Reverse Mortgage Better Than Other Reverse Mortgages?

According to HECM reverse mortgage information, there are three benefits above others. HECM reverse mortgage has the largest loan advances, you can select the payment schedule and you can use the money for the purpose you want. So with one term, it is flexible.

Many seniors think, that the reverse mortgages are expensive ones. However, the HECM reverse mortgage loan is cheaper than the loans, which are privately insured. In most cases the HECM reverse mortgages have lower interest rates, so according to the total costs, they are obviously cheaper ones.

• The Reverse Mortgage Information About The Eligibility.

The HECM reverse mortgage loans are available in 50 states in USA, plus in the District of Columbia and Puerto Rico. The borrower is eligible, if he or any of the owners, who lives in a home is at least 62 and the home is used as a principal residence.

There are some restrictions concerning the home type, mobile homes for instance, and the home must meet HUD minimum property standards. If you must repair the home, you can do it with the money you will get from the HECM loan. And, this is important, you have to discuss with the official counselor.

• The HECM Reverse Mortgage Information About The Repayment.

Usually the HECM reverse mortgages will be paid back, when the last borrower dies, sells the home or moves out permanently. Also, if the last borrower, who lives in the home, will be away 12 months or over because of the physical or mental illness or if he fails to pay the property taxes or hazard insurance.

• What Is The Debt Limit?

In the case, that your HECM reverse mortgage loan sum has grown and is equal to the value of your home, this value limits the debt sum, if the home is sold to repay the loan. But usually the debt sum cannot exceed the value of your home.

If this happens in some exceptional cases, like during the economical recessions, the mortgage insurance will cover the difference between the home value and the loan sum.

The insurance is compulsory. The reverse mortgage loan sum cannot be debited from your other assets or from your heirs or relatives.

Author Resource: Juhani Tontti, B.Sc., Marketing. Senior, Do You Plan To Get Income From The Reverse Mortgages? If You Do, Research HECM Reverse Mortgage Loan. It Is Flexible! Visit: Reverse Mortgage Information

Article From: RealEstateArticles4U.com

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Remove Bankruptcies, Charge Offs,
Repossessions And More: How To Get Them Off

By: Jay Delgado

In this article I am going to share some tips with you that will help you remove some items from your credit report, even if they are yours.

The credit reporting agencies are bound by the laws of the FCRA and FDCPA to report accurate information. Your name, address, date of birth, SSN etc. all need to be correct.

Also the three credit bureaus are obligated (as well as your creditor) to verify any information that you dispute to be not valid within a 30-day time frame. Thirty days!

Ok, with the above in mind let’s get to work.

First off, I would advise reading up on the above reverenced laws in order to facilitate an effective campaign and also grab some of these laws verbiage so you can insert them into your dispute letters.

Get your most recent credit reports from the three credit bureaus and go through them noting any negative information that you believe to be inaccurate. 30 day late, bankruptcies, charge offs, repossessions, they’re all coming off (as I am going to show you how) so stick with me here.

OK, now you are going to have to write a letter (no not some form letter you got off the internet) that is different and creative. State why the item is not yours (maybe it isn’t) maybe you had your identity stolen or your ex obtained credit in your name without your permission, so put that in there. By the way the last sentence is known as IDENTITY THEFT. Quote the laws that say they have to remove it because of this.

Challenge the bureaus to validate the debt within the 30-day time frame or have it removed. A well-written letter is powerful and any claims you put in it as grounds for removal, the bureaus have to prove otherwise or remove it. Simple as that!

So now you wrote your letters (with some nice legal verbiage) and put the items that you are claiming are not yours in there as well.

The next little trick I am going to mention works like a charm, don’t ask me to explain why, but I’ve had success with it and when I started doing this on letters it increased my success 10 fold. Notarize your letters, that’s right, go to a notary and have the letters notarized.

Now take the letters, include a legible copy of your SSN and drivers license, address them appropriately to each of the bureaus and send them out certified mail return receipt requested.

The 30-day time frame will begin from the time they sign for it. Hold on to these receipts because you will need proof you sent them if you don’t get your response back within thirty days. (This is another letter you can write to have the items removed because of failure to validate the debt in 30 days)

You should start to get responses back within 30-45 days and I know you will see some items removed and some items will come back as verified.

Do not worry you can just do another round, same process over again.

In about three rounds you should have a pretty clear report and I am most sure that the bankruptcy you said wasn’t yours is off of at least two of the three if not all.

Keep it up, respond back with some better-written letters in response to theirs and always quote some laws.

Between the laws quoted, notary and the simple fact that they only have 30 days to respond (to about a billion other dispute letters) you can clean your report if you stick to it.

I guarantee it! O yea, it does not hurt to simultaneously dispute on line as well.

Author Resource: J Delgado is an expert in helping individuals restore there credit. To find out more about having foreclosures, bankruptcies, late payments and other derogatory items removed from your credit report contact him at creditexpert@scrubyourcredit.com

Article From RealEstateArticles4U.com

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3 Tips On Getting The Best Mortgage Refinancing Loan

By: Susan Jan

Mortgage refinancing loans are viewed as one of the most innovative ways of saving on the interest payment while at the same time gaining access to some extra cash by using your home equity. But before you opt for a mortgage refinancing loan, be sure to do some research to help you make an informed decision.

Research Different Types Of Lenders

You can obtain a mortgage refinance loan from different types of lenders including thrift institutions, commercial banks, mortgage companies, and credit unions.

The loans can also be arranged through mortgage brokers. They help mediate between you and the lender instead of directly lending you money. One advantage of getting a loan through a broker is that the broker has access to a wider selection of lenders and can arrange for loan products with better terms and conditions.

However, it is important to know whether you are dealing directly with the lending company or through a broker. There are certain financial institutions that operate as both lenders and brokers. Often the brokers themselves do not declare themselves to be the “broker.” This is important to know because broker’s fees are often added to your interest rate or payable as “points” at closing.

Seek Information About Hidden Costs

Various credit institutions try to lure the customers with attractive monthly payment terms. But getting information just about monthly payment rate is not enough. Learn about the total loan amount, terms and conditions, and type of loan that is being offered. This information will help you more accurately compare between the loans provided by different lenders.

Consider what type of interest rate is being offered, whether it is fixed or adjustable rates. Remember, your monthly loan payment may go up in case the interest rates for adjustable-rate loans surge up. Also consider the loan’s annual percentage rate (APR). The APR reflects all the costs of the loan in the form of an annual rate including interest rate, points, broker fees, and certain other credit charges.

Find Out The Points And Fees

Points are the fees of lenders or brokers and the amount is generally included in the interest rate. You should also research the current industry fees and points.

Refinancing loan involves many more fees like loan origination or underwriting fees, settlement, and closing costs. Remember most of these fees are negotiable. There are also the “no cost” loans, but they naturally charge higher rate of interest.

Before trusting any particular financial institution, shop around to compare costs and terms. Once you get the quotes from different lenders, negotiate for the best deal. The internet is the best place to shop for a mortgage refinancing loan. Several websites will provide you information on interest rates and points offered by various lenders. Remember, rates and points can change on a daily basis, so do the research and grab the best offer as soon as you can.

Author Resource: To get a Mortgage Refinance Loan go to EasyMortgageRefinance.info for more info on Mortgage Refinance.

Article From RealEstateArticles4U.com

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How to Use Twitter to Give Your Real Estate Business More Personality

By: Volker Weiss

In the past several years the term networking has taken on new meaning, thanks to the internet and the ability to connect with people all over the globe instantaneously. And networking via social media platforms, such as LinkedIn, Facebook, MySpace, etc. has become very popular among business people.

One of these social media platforms you may have heard about is Twitter. Twitter is a micro-blogging platform - you get 140 characters in order to blog (tweet) whatever you’d like to tweet about. The program has been in existence since 2006 and has been growing in popularity with no slowdown in sight.

What is Social Media?

One of the main points of social media is to get your personality, your brand out there to the greater public.

“Wait a minute,” you’re thinking. “My personality and my brand are two different things. My personality is me. And my brand…well, that’s my business.” However, in the real estate business, your personality is very much tied to your branding. In fact, many real estate agents have created a larger than life persona that is their brand.

Real estate clients don’t need a slick looking logo or a catchy little catchphrase. While those are both nice to have on all of your marketing materials, you know that it boils down to your personality. Real estate clients want to work with someone they like, someone they feel has integrity and someone they feel can get the job done.

Think you may have a hard time tweeting about things, especially when you are limited to 140 characters?

Here are some ideas:

• Tweet your real estate blog posts
• Tweet about your featured listings
• Tweet about current happenings in your local real estate market
• Tweet about marketing ideas…just ask what others think and you will get feedback
• Tweet about the latest gadget you bought and love

Here are a few things you should avoid doing while on Twitter:

• Don’t overuse profanity or be vulgar. Remember, you are a business person and you need to present yourself professionally.
• Don’t be a pushy salesperson. Just because you see in your Tweet stream that someone is thinking about buying a home in your area doesn’t mean you should immediately go into attack mode. You can offer help, or even direction (”My site lets you search the MLS. Let me know if you have any questions.”). Helpful is good. Pushy is bad.
• Don’t tweet all about real estate all of the time. Be yourself. And make some of your tweets personal in nature. (Just not too personal). You want people to get to know you as a person, not just a real estate agent.

Make sure you take some time to respond to other peoples’ tweets.

Twitter and social networking is about making connections with others, not just a constant grab at attention for your business’ sake. Even if it’s just 5-10 minutes a day, watch your tweet stream to see what the people you are following are tweeting about.

If you see something that you can comment on, something that catches your eye, then hit the little arrow for a reply and then type away! Even if these people do not currently follow your tweets, you may find that by presenting yourself and replying to something they have tweeted about will start up a conversation, or at the very least, get them interested enough in you to check out your profile and perhaps your website.

Again, it’s all about making a connection and being yourself and seeing where it may lead.

You don’t need to spend a crazy amount of time on Twitter on any given day. You can go on once a day to catch up on tweets. Or you may decide to be more interactive and start tweeting from your Blackberry. There are dozens of applications out there that work with Twitter that you may find useful, from scheduling future tweets for the day to uploading pictures of your listings. You can even check keywords trends to see how certain words are used on Twitter.

As you tweet about life and work, and just be your professional self and make connections, you may find more traffic heading to your website. You may get questions here and there about real estate. You may even get some actual referrals that result in transactions. In the end, you are furthering your branding, getting your personality out there and connecting with people who can help you or people whom you can help.

And that’s what networking is all about.

Author Resource: Volker Weiss - Maui Realtor(R/S) specialist focusing on Kai Malu. Make your vacation last forever, check out Wailea Real Estate. For immediate help call VW directly at 888.572.6888

Article From RealEstateArticles4U.com

Getting Ready for an Open House

By: Paige Martin

An open house can be a wonderful way for a seller to advertise their home for sale to many people in a very short period of time. It’s also an opportunity to showcase the finer points of the home in a way that pictures just can’t capture. However, before hosting an open house, it’s important to keep a few things in mind.

The first thing to consider is when you hold your open house. Most open houses take place on weekends when potential buyers have the time to stop by the property and check it out. It’s also important that you schedule your open house around nice weather, if possible. Most people will want to stay in their own homes if it is raining but will be more likely to tour other peoples homes on sunny and warm days.

Make a List of the Needed Repairs

Then make a list of all the things that need to be done before the open house. This includes making small repairs, clearing clutter that will detract from the space, and taking down personal items such as photographs.

A buyer needs to be able to envision themselves in the home and the potential for making it their own. If there are kid’s toys lying around, and pictures of people that they don’t know on the walls, it will be much harder for them to picture the house as their own.

Another advantage to de-cluttering and putting away personal items is that the emptier a space is, the larger it appears and this is true even for the walls.

Make sure Your Home is Clean

It’s then important to remember that a dirty home is not an attractive home. Dust on the shelves and dirty carpets and floorings do not make someone want to bring in their own personal items.

Before the open house, make sure that every surface has been given a thorough cleaning, the furniture is all polished and that all floors have been cleaned. It can also be a good idea to give dingy walls a clean look by giving them a fresh coat of paint. If you decide to paint the walls, be sure to allow for plenty of time for them to dry and to get the fresh paint smell out of the house.

Coffee and Fresh Cookies add a Nice Touch

Lastly, brew a pot of coffee or bake some cookies. Not only will these provide refreshments for the potential buyers but they will also bring an inviting scent into the home.

Author Resource:> Paige Martin is award winning Houston realtor. Her website features 500+ pages of data and lists all MLS Houston Townhomes for sale. Paige is a member of the Houston, Texas, and National Assoc of Realtors.

Article From RealEstateArticles4U.com

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What You Don’t Know About Your Monthly Payment Table Can Hurt You!

By: Ed Lathrop

In the world of finance, having all expenses accounted for means everything. Hidden expenses are constantly sneaking up behind the investor, businessperson and homeowner and biting him in the backside.

Knowing where every cent goes and having every expense accounted for is one of the keys to gaining wealth. One tool any real estate investor or homeowner can use to find out where his money is going is the monthly payment table, which is also known as an amortization table, schedule or spreadsheet.

What a monthly payment table says

In a monthly payment table, the mortgage payment is shown as two parts, or separate payments. One part is the principal paid. This amount of money goes directly toward the amount borrowed.

For instance, if a person borrows $100,000 and pays $1,000 toward principal, he will need to make 99 more principal payments of an equal amount to pay off the mortgage.

The other part of the payment the table shows the interest paid on that payment. In the early stages of a mortgage, this amount is usually far higher than the principal part of the payment. When a person pays interest, it is money he has lost.

Interest is time value of money

By looking at a monthly payment table, you can look ahead to the next payment after the one just paid. Here, you can see what the principal and interest parts on the next payment are and pay just the principal part of this payment.

By doing so, you’ll avoid having to ever pay the interest part, which would be due if you waited until the payment’s due date. This is one way where monthly payment tables can be very helpful to anyone who is looking to save, or even make money.

The interest part of the payment shows the time value of money. So, by not using the allotted time to make a payment, the borrower will avoid paying the time value of the amount due on the loan, which is the interest. This is very beneficial because sometimes the interest payments in the first year of a mortgage are 10 times what the principal payments are.

Pay a little, save a lot

Saving the interest part of a payment by paying the 1/10 as big principal part is an example of leverage. This is an important point because leverage is the key to wealth building.

Leverage is used when a property owner uses the rent he has received from a tenant to pay the mortgage on that property. In this case, if the price of the property being rented increases in value, it is the person paying the mortgage, not the person paying the rent who is the beneficiary.

Until someone looks at his mortgage payment, or amortization table, he has no idea where the money is going or how he can use the leverage small principal payments give him.

It is amazing to see the looks on people’s faces when they see their monthly payment table for the first time. People who, in many cases, are very smart and well versed in math are shocked when they see how much money goes toward interest in the early stages of their mortgages.

Knowledge is king

Being familiar with monthly payment tables can help borrowers save thousands, and sometimes even hundreds of thousands of dollars, because they will know how much leverage they will have when they make relatively small principal payments upfront.

For this reason, it is very important any potential borrower has a monthly payment table printed out for him right at the beginning of that mortgage’s term. This way, the borrower is awakened to the fact most of the mortgage payments will go toward interest.

They say ignorance is bliss. Because of this so many people, who don’t know where their mortgage payment money is going, pay without giving it a second thought. Those to do know however, usually work very hard to make upfront small principal payments and avoid paying larger amounts of money toward interest; which is simply wasted money.
Author Resource:-> Ed Lathrop is a successful real estate investor. He has developed EzCalculator, a mortgage calculator that shows you how to save $100,000 on your mortgage. Come visit this free site at free financial calculator. Also, find out how to get and use your amortization spreadsheet to make big money at amortization schedules free These sites are not owned by any lender, so no one will harass you for visiting!

Article From: RealEstateArticles4U.com

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Foreclosure: Types And Opportunities In A Down Market

By: Prudence Wong

If you are not aware of the term foreclosure, here is your chance to know it better. It is a down market situation when the lender takes the possession of your property in case you fail to make your mortgage repayment.

If you are a defaulter of loan, a Notice of Default will be sent to you by your lender.

Now, let us get deeper into the matter.

The process of foreclosure can end up in different ways. The borrower of loan can make his repayment during the state law determined grace period. This situation is termed as pre-foreclosure. It may so happen that the borrower gets his property sold to a third person when his property is in the pre-foreclosure period.

As the borrower gets the property sold, he can make a payment of the loan and save his credit history. During the closing of the pre-foreclosure period, a third party can purchase the real estate at a public auction.

The lender always aims to resell the foreclosed property. He can either enter into an agreement with the owner during the pre-foreclosure situation or purchase back the property at a public auction to take up the ownership of a property. These properties are called REO or bank owned properties.

Foreclosure Opportunities

• Public Auction: When the owner fails to repay the loan at the closing of the pre-foreclosure period, the process of bidding on the property begins at the public auction. Some public auctions offer the best of bargains.Sometimes the buyer has to carry the entire cash and sometimes only a certain percentage of the bidding amount.
• Pre-Foreclosure: During pre-foreclosure, purchasing a property in the real estate area calls for making an approach to the owner or borrower for purchasing the property. What the borrower can do is just walking away with the equity to prevent a negative remark on the credit history.
• Bank-Owned or REO: If possession of a property is taken either during a public auction or during pre-foreclosure by the lender, then the latter will always have the intension to get it sold to make for the unpaid amount of loan. He will make a clearance of the title and do away with the maintenance work.

The discount on the REO homes is mostly lower than that at the property auction and during pre-foreclosure. A bank foreclosure turns into a government foreclosure when the loan is backed by an agency of the government. In such a case, it will be the government agency that has to take up the responsibility of selling.

Author Resource: Prue and her 1-of-a-kind site at www.RealEstateBloom.com helps you to make money in ways you’ve never known. Discover how to be a millionaire making money via real estate investment within days, even in a down market!

Article From RealEstateArticles4U.com

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Why Should One Chose The Foreclosure Business?

By: Ranju Kumar

Foreclosure is a process that is instigated when borrowers are not able to consistently pay back the required mortgage payments to the bank or organization.

As the value of the property is used to as a guarantee against nonpayment of the debt, the said property is sold so that the debt can be repaid. Unfortunately for the owner, you rarely get the full market value for the house when it is sold.

This is because it is priced for a quick sale, plus any would be buyer is likely to be aware that it has been subject to a foreclosure, and so they won’t offer as much as they might otherwise.

Why would you want to be involved in the foreclosure business?

Lets examine all the advantages:

• Leads: If you are in a Deed of Trust state, foreclosure notices are published in the newspapers.

If you are in a lis pendens state, you have to go to the County Recorders office to research the suits, where you can get new leads every day. They may also be published in newspapers.

• Equity: You will have equity available on every single deal that you do upfront.
• No money in the game: After you get a foreclosure, you can sell the contract or assign it, that is, wholesale it to someone else immediately.

• Credit is not applicable at times, when you need a hard money loan: This type of lender is not looking at your credit scores. They are only interested in the type of deal that you are presenting, that is, how good is the deal and how many cents on the dollar you are going to pay for the property.

• Low risk and potential for significant profits: With all the foreclosures out there, there is a very good chance, with a good marketing plan, for real estate success; you will reap some substantial profits.

The best way to gain experience in the field is probably to find someone in the industry who is experienced, respected and has been in the same position for a number of years and ask them for a mentor ship, either on a complimentary basis, or splitting profits from the work done, or any other mutually beneficial arrangement.

It will be up to the former foreclosure victims to locate a local company in the area or find one online that specializes in work that provides homeowners with real services. This is how one can learn about foreclosure and make money out of it.

Author Resource: Why operate a Foreclosure Business?

Article From RealEstateArticles4U.com

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How To Deal With Roofing Problems

By: Kris Koonar

A leak in the roof of the house could be any homeowner’s worst nightmare.

It is true; no one would like to have a leak in the roof. It is very hard to locate the origin of the leakage as it shows up far away from the place where it originates.

It is a pain at times, to find the leak. A leak in the roof could destroy precious pieces of furniture and ruin the whole look of the house. They could also cause damage to the structural integrity of the house. It could damage the sheathing and the framing of the house.

The life of any type of roofing is not more than 20 years. It is very essential to fix the roofing problem before it gets out of hand. Do not ignore a leak as it will definitely grow and cause more problems.

Various solutions have come up to deal with roofing problems.

If the roof of your house does have a problem do not panic. It is necessary to carry out the procedure calmly. The Internet is a great place to find out solution to roofing problems. You can also find tips, on how to prevent leaks. The Internet is also a good place to look for roofers. You could also enquire about roofers with your neighbors, families or friends.

Select an appropriate roofer and check if he/she is factory-certified. These roofers are trained at a factory and are known well for their work. It is important to carry out a small research before hiring a roofer. It is better to hire a local reputed roofer well known for his quality work. You also need to make sure the worker is well insured with workers’ compensation fund. This way you will not be liable for any accident the worker may have in your house.

While roofing, you have to make sure that the workers abide by certain building codes laid on a national, state or local level. If these codes are not followed, the local building inspector may ask you to tear down the whole thing and then rebuild it. This will increase your expenses to repair.

Another important factor to remember is the ventilation. There has to be enough ventilation in the attic to ensure a long life of the roof. Improper ventilation of the attic can damage the roof and the structure of the house.

Every roofing material has a manufacturer’s warranty for any defects in the material. The conditions of the warranty will differ for products of different manufacturers. Warranty provided by the contractors is different from that provided by the manufacturers.

The contractors will mostly provide guarantee on repairs made by their employees. It is good to have guaranty/warranty from both the manufacturers and the contractor. It is good to carry out financial background check on the manufacturers and the contractor, as they are susceptible to dissolve licensee within 5 years.

Author Resource: Classic Metal Roofs serves Southern New Hampshire, Rhode Island, Connecticut and Massachusetts Metal Roofing Market.
Article From RealEstateArticles4U.com

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