When you take out a mortgage you can deduct the mortgage interest up to a loan of $1,100,000
loan balance. That certainly saves you a good amount of income tax.  Now suppose you have a $500,000 loan on your primary residence and you also have a balance of $48,000 on your credit card(s).  If you were to refinance your primary residence which has a $500,000 current loan you can pull out $75,000 to pay off the credit cards and have some reserves. You now can deduct the credit cards as well  

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
The ability to deduct your payment from your tax liability will start paying dividends immediately.-You need to find all the gifts the lenders and the IRS are willing to give you.
Let us show you what we know.
If you are at least 62 years of age and own a house with or without a current mortgage on it you might be able to procure a “reverse mortgage”.  It will depend on your age and your equity to determine you have enough equity to pay off your current mortgage, if you have one.  If you don’t have a mortgage you will receive cash from your property. If you have a mortgage you will have it paid off and can still get cash from the property
In either case you will not ever make a mortgage payment while you are in your house.  The interest on the new reverse mortgage while accrue until you leave your property and you or your heirs will owe the balance.  If the value of the house is higher than the mortgage you or your heirs can sell the house, or pay off the reverse mortgage and keep the house.  If you or
they do not want to have the house you send the keys back to the reverse mortgage lender
and relinquish the house to that lender. No money will be required.
Not having payments is the reason to take the property and even if the property starts falling in value you will still get your monthly payment without any liability to you or your heirs EVER!
-Your heirs will be concerned so I will show you what they get.  When you get the reverse mortgage you do not give up your ownership rights including the increase in value of the property until you leave the house.  This is akin to have a option for the heirs, without paying for one.  If the house goes up the heirs will most likely move into it or sell it sand keep the profit.  They aren’t paying anything along the way to have this option.
If the house goes down they can refuse to buy it and it goes to the lender.  They don’t lose
anything because they aren’t paying for this option either.  These options aren’t the only benefit for the heirs.  I will follow up shortly with more goodies!
It is time to find out about this terrific mortgage.  Making mortgage payments aren’t required
and either is your worrying!

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
income taxes..

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.

When I was a young married man with a very young family, I found myself so deeply in debt that my goal was simply to get even. Eventually I got there and it was then that I realized  that getting even is not enough.  We are not built to get even; we are built to get everything we can get while applying our trade.
Think about it!  You certainly aren’t thrilled if you go to see a sporting event and it ends in a tie.
If you decide to make a wager you certainly aren’t excited if you get your money back.  When you go to work in the morning you don’t hope to come out even; you are looking for a profit.
You need to do more than simply live in the house you own, especially if your house is in a growing area.  If you were smart enough, or lucky enough to get into this great area you owe it
to yourself to take all the advantage you can to help grow your net worth.  Don’t waste the time  without preparing for your senior years while the opportunity is right where you are.
What steps can you take to be sure you’re heading upward, past even?
  1. Make a plan and own it.
  2. Review and revise your plan periodically.  Adapt to change circumstances.
  3. Reach your goals in stages if necessary. Do what you need to do to survive,
      but once you’re stable you need to rethink your position.  For instance you may have
      to go with a longer term variable mortgage for a period of time.  Once you get through the
      crisis start looking at shorter term loan, as the 15 year fixed.  This loan will get you going
  4. Don’t forget to maintain reserves.  Aim for six months to a year of liquid assets.
  5  Press your advantage.  When the economic climate is right, use leverage to strengthen
      your financial position.  When circumstances change, pull back and stay on the defense.
      Real estate interest rates are a good gauge of current economic conditions.
   6.Think positive.  An optimistic outlook often results in a much better outcome.
Stay focused on your plan, but don’t be afraid to make changes. They have erasers on
pencils for a reason!  Your the Captain of the Ship: bring it back in the best shape you can.
I have been married twice in my life and have always been interested in housing.  I bought six houses with my first wife over an approximately 21 years.  The last house I bought  was the first one I bought as a licensed real estate broker in California.
I remarried and  bought 2 primary residences and 12 second homes. That gives me a grand total of 20 homes in 43 years.
I also have several steady customers that I have bought 15 houses for one of the clients and approximately 7 for the other client. I also have a long term friend who was a builder until he retired and I sold the last house he built 3 times over during last 15 year period.
The evolution of my ideas for purchasing houses comes entirely from my experience in the business.  There are 3 rules I use when showing people houses that have worked continuously
over the time period I have spent in the real estate industry.
                   1.  People do not know what they want in the type of house they are seeking.
                   2.  Although they are always sure, and it is their #1 priority, the location loses
                        important pretty quickly almost every time.
                   3.  Money is always a sticking point, that goes away easily for the right house.
I will relate a story about one of my clients of about 30 years.  The couple hadn’t been married to long when they came to me and told me their house was too small and they wanted a certain type of house in a vey nice area close to where they were living and gave me a budget.  I wasn’t able to put there wishes into a sparkling new place for them  The husband said he would give me 6 things he wanted and if I could find them he would buy the house. He gave me the list and I went to work.
They got the “dream house”  and at a party a few months ago I asked the husband if he remembered the list.  He said he remembered the list but couldn’t recollect what was on it.  I told him to sit down and relax and I would tell him what was on it. He did. The list contained the size and design of the desired house: ranch style, one story.  It had the approximate location, south of the main boulevard.  It couldn’t be near the freeway and have easy access.  Last but not least it would be less than $1 million.
The house they bought and still live in is a two story Tudor, north of the main boulevard,
a pitching wedge to the freeway with almost a one lane road in front of the house that cost
50% more than he wanted to pay.
THIS EXAMPLE IS NOT THE EXCEPTION:  It just happens this way almost all the time.
Thanks for reading How To Buy A House The Right Way

homeBuying 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.

home_sale_tax_liabilityI 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!

Home Buying Tps {CITIES}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!

Credit cards were designed to allow someone to spend money on various
items, from home goods, to clothing, to vacations and meals. They were also
designed to be paid back for your items at the end of each month. When they
started to let people pay a monthly fee based on your balance on the account, instead of paying in full, the credit card industry became of age.

Now people carry balances that rival second trust deeds in size and for some
balances that are equal to home mortgages. The reason for the growth of balances comes from the fact that most people must wait until the credit card(s) bill(s) arrive each month. Once they see how much they spent they generally opt to pay the minimum on the bill, or the minimum and a bit more.

Before I get into a better plan than I outlined above I want to give notice I am not
your Father and I am not against what you do with your money. I do,however, want to show you a problem with your way of paying,and show you a better way.

When you pay your credit cards with your cash that is in your account you are paying for the purchases with AFTER TAX money. If you earn $100 and are in the
20% bracket you will have $80 after you pay the $20 tax. An $80 charge will actually cost $100 to pay back.

If you were to borrow money on your house, a new first mortgage plus a stipend
to pay bills, then you would pay your credit card bills with Before Tax dollars.
Not only is it before taxes it is actually a tax shelter as the interest on the extra
money you borrower is a write off. If you borrow a $100 you pay interest on it
and that interest lowers your income tax. In the 20% bracket you would only
pay $80 on the bill with the other $20 going to pay your tax.

How much would you save? $40 dollars because you use after tax income instead of before tax income. If your credit card bill was $1000 you would save $400.

How do you make it work? Take enough out of your house that will cover a few months of your payments. Make sure that you take some earnings each month
to replenish your monies for the credit cards. After a short while you will be in
charge with a better way of paying your bills.