That maneuver is allowed if the loan to value on your new loan fits the loan limits. You cannot pull out over $100,000 above your current loan balance and you will not have a loan any larger than
Monday: The most important feature of the home loan is the term, not the interest rate.
The term dictates the normal amount paid by the borrowers on their house, as they
strive to pay it off. A shorter term means less payments.
Tuesday: Even though the 30 year fixed has dropped lower than your 30 year fixed it will
cost you money if you refinance to the lower interest rate, because you start the 30 years of
payments all over again.. If you wish to refinance you can take a shorter amortization or take the lower 30 year fixed but keep the same monthly payment you currently have.
Wednesday: Today’s taxes on the profit on the sale of your house has a provision that will yield you, and or your spouse, special savings if you have lived in the current house for two consecutive years. If you are single the first $250,000 in profit will not be subject to federal taxes;
if you are married the first $500,000 in profit will not be subject to taxes.
Thursday: If you have a low loan to value you should try to take cash out of the property
and pay your much higher interest credit cards. This gets you a better balance sheet and lower
Friday: If you are going to pull cash out of your residence or any other real estate project
for the express purpose of remodeling your property, check your plans with a builder, architect,
designer, home decorator, a realtor and who ever else you can think of that can validate your
idea. You don’t want to take money and end up making the current place less valuable.
The first week of headline ideas to help the consumer. Let me know your thoughts.
I remarried and bought 2 primary residences and 12 second homes. That gives me a grand total of 20 homes in 43 years.
Buying a house to live in is a great thought but just half of an idea. It is at least 3 or 4 decades that home buyers have been looking for more than a house to live in, and more importantly, one to to invest in. The truth behind what I just said can be proven by simply talking to friends and acquaintances about their house. You will not get an answer from the past; 3 bedrooms and a nice backyard, which gives us room to expand when we enlarge our family!
That answer would have been right on in the ’70’s or ’80’s but not today. Most of the younger homeowners are excited by their home, but deep down they are over joyed with opportunity to make money while living in a necessity: their house. They are aware of their neighborhood and its financial potential while they are raising there family, but secretly calculating their future.
There are many ways to make the pleasure of your house become the treasure of your family. Certain types of loans can help give you the formula for success; while other tools
such as the tax code can give you another solution. Unfortunately many don’t think about other options.
A great option is the opportunity to sell your house and get profits $250,000 for single owners; and $500,000 for married without any federal income taxes on the profit. All you need to do is live in the house for at least 2 years as your owner occupied house, and have profits of $250,000 to $500,000, Best of all you don’t have to live in the property the last two years. You just need to have lived in the house any consecutive 2 years during the time you have owned that house.
If you don’t want to sell the house you can refinance, pull some cash out, and buy a second home or rental which will give you pleasure, profit and in many cases both. Because the youth of today are not maturing as fast as we did they are more than content to live in a rental. Rentals are in big demand and rents are going through the roof.
There are still many other ways to make your house pay, such as trading it for units , two to four, and occupy one and rent the rest. If you are in the right area you can completely upgrade your house for a quick sale, or to enhance the home as a rental. You can take a reverse mortgage and make no more mortgage payments for life.
If you have time explore your neighborhood and see what you might find to enhance your property. After all you were smart enough to get there so don’t stop now.
As per usual we are ready to help you embolden your dream!
The answer for the title question is both good and bad. The reason I bring this up is the confusion I have seen over the last 3 decades because not everyone has a financial background and it doesn’t seem to bother them. The way I wrote this is pretty clear: if you have a mortgage on your home it means you owe money to the lender; if you wrote a mortgage for a borrower it means that you own the mortgage and will collect the interest and principal throughout the time period it will take the borrower to pay the money back to you.
The interest payments one makes while paying off the mortgage are generally tax deductible and this amount will be written off against your earnings which will help lower your income tax. The borrower’s money you receive while owning the mortgage both reduces the borrower’s debt, while it also gives you a profit on the money you gave them until it is paid off.
If you are interested in making money you need to own the debt; if you are interested in leveraging your purchases then you will use the debt. In either case
you should be careful in how much you borrow because debt is not good in the long run and equity, which can include holding debt, is what you need to have a smooth financial life.
When you first buy a house and take a mortgage you should set the payback of the mortgage as quick as possible. Paying debt off is certainly not the same as
receiving mortgage payments. Having debt holds you back; owning debt gets you going in the right direction. Keeping that in your mind will keep you heading in the right direction.
I don’t imagine that the title is a surprise to you, but what I surmise will be. The election will take place on the first Tuesday of November and might just give you the impetuous to make a move that can help you get tax free money and also help you with your retirement. SO WHY NOT READ ON!
If you live in your owner occupied residential property, and will be there 2 years by the time this election takes place you can sell your owner occupied property and get the first $250,000 tax free if you are single or $500,000 if you are married. Let me say it again: no tax on the first $250,000 of profit from the sale if you are single; $500,000 if you are married.
Now you might wonder why this is such a big deal. Our nation is deep in debt of which you and I are going to have to help bail us out. One way of us helping, without anyone asking for our help, is to raise taxes. The politicians will most likely not miss the opportunity to get rid of this amazing tax shelter and put back the capital gains tax.
Sell your house and put the $250,000 to $500,000 into the bank, an annuity or a vehicle
that isn’t speculative. Then buy another place with a reverse mortgage, if you are 62 or older, a smaller place with a minimum down payment or even units, 2 to 4,units where you can live, collect the rents and help them pay for your mortgage.
Having a lump sum of money is not for bragging rights, but for living right: less pressure or even no pressure leads to a longer life. :Pick a date and get it done and it will be another great anniversary as your marriage, your children’s birth or even your great granddaughters
Let me know if you have any questions and be sure to let me know when your transaction is
complete. I love success stories!
The title of this blog may seem a little silly, but when I tell you there are as many people in
this country who spend more time considering what is in the bar, what can it do for me and is
it priced right than those buying a house, you might want to stop laughing and start learning..
Chocolate can be good for your health if eaten moderately with a full diet of all the other ingredients that you need. Some people aren’t that concerned except for the price of the item. Others are worried about the potential weight gain if they eat these treats to often. Last but not least it’s just a small cost and a small part of your diet.
The number one problem in buying a house you are going to live in as a primary or second home, is doing what my smartest attorney and adviser taught me decades ago: “Don’t fall in love with love”. I add only one thing you need to know and follow religiously: In the long run it all boils down to how comfortable you will be in the house financially!!
Before I begin I will give you my credentials to at least demonstrate that I have been through the housing wars and know what buyers need to do and NOT do during the “mating dance”. I have been a California Real Estate Broker for 27 years and have bought hundreds of houses from small beginner homes to large multi-million dollar houses. Please understand that the basics of buying or selling are about the same whether the house is $5,000,000 or $150,000.
The rules for buyers are different from the rules of sellers. Today we will only discuss buying a
personal resident, whether a first or second home. Unless you go out yourself and seek houses that aren’t on the market, thinking you can save the commission, you need to know who actually pays the commission. The answer is the seller who pays the commission.
Knowing that the seller pays the commission to the listing agent, and he splits it with the
selling realtor (your realtor), why would you engage the selling agent as your realtor. His allegiance is to the seller for the most part. There are exceptions but it isn’t smart unless the listing agent is a friend of yours When it comes to the price negotiations the listing agent will favor the seller.
The people who get the best deals are those who understand how poker is played: no emotion,
no statements that give away your hand, no talking to the adversary (the seller or agent) about
how much you like the house. Do Not Correspond With anyone but your broker. Please do not
drive buy the house a number of times or park in front of it so the seller can see your anxiousness which will cost you more money in the long run.
Follow your agents advise or if you don’t like it, change agents. Never forget this is a business
transaction, or if you like it to be a championship contest so be it. Stick to the rules and your
outcome will be much better than you ever thought.As much as you like the seller, he or she or
both are to be avoided until they sign the sales agreement. If you get to friendly it can cause you
to express your strong desire to own their house, at that is an invitation for the sellers to be obstinate on the price.
The last part of this blog may make the earlier part insignificant. Two important things will happen
after all parties sign the offer: an appraisal will determine the value of the house and a home inspection can easily lower the value of the house because of some deferred maintenance or
some equipment that isn’t working. These problems, if they exist,could require more negotiations.
That is why you don’t become friends until you own the place.
A number of home buyers make money on the house they buy in as little as a few years and most
people make some money while owning the house. The better the purchase increases the odds
of both making money and doing it quicker. I have always believed you make more money when
buying the house properly than selling it down the road.
Try following this advise and see how the outcome stacks up with your earlier purchases.
Happy house hunting!