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Sooner is Better than Later

by Pat Zaby

 

 
Better
Homeowners
Pat Zaby
Seminars & Systems
5023 Sea Pines Drive
Dallas, TX 75287
(972) 407-1337
Pat@PatZaby.com
www.PatZaby.com
Sooner is Better than Later

Buyers who have delayed purchasing a home due to concerns about what might happen to the tax laws affecting home ownership should feel comfortable about getting back in the market. The recent legislation passed by Congress and signed by the President continues to value homes as a favored investment.

 

For a summary of specific real estate provisions in the "Fiscal Cliff" bill, click here.

Whether the delayed purchase is for a home to live in as your principal residence or to use as rental property, taking action sooner is better than later.

Reasons to buy now:

  1. The house payment with taxes and insurance is probably cheaper than the rent.
  2. Rents will continue to rise making the difference even greater in the future.
  3. Lock-in the principal & interest payment with a fixed-rate mortgage.
  4. 30 year mortgage terms are available to most borrowers.
  5. The mortgage interest deduction is intact for the majority of taxpayers.
  6. The capital gain exclusion for principal residences up to $500,000 remains in place.
  7. Prices are going up due to lower inventories and several years of low housing starts.
Contact me about any specific questions you have or information you need.

 

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What's It Going to Take?

by Pat Zaby

More Expensive Than Expected

by Pat Zaby

 

Better
Homeowners
Pat Zaby
Seminars & Systems
5023 Sea Pines Drive
Dallas, TX 75287
(972) 407-1337
Pat@PatZaby.com
www.PatZaby.com
More Expensive Than Expected

The 3.5% down payment on FHA loans could be more expensive for buyers than expected. Beginning April 1, 2013, the mortgage insurance premium will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners.

 

The staggering increase will occur on 6/3/2013 when FHA's policy on the duration of the required mortgage insurance will be increased for the life of the mortgage. It basically doubles the amount of total MIP if the loan is paid to term.

 Example: Purchase Price $175,000 
with 3.5% down payment at 4% mortgage rate on 30 year term

 

Current

After 6/3/13

MIP duration

78% of original loan

Life of mortgage

Cumulative premium

$20,838.24

$42,447.93

Currently, the MIP is required for approximately 9 years 9 months with normal amortization. The new program would require the MIP for the life of the loan. In this example, the initial monthly MIP is $196.88 which decreases based on amortization.

There are buyers that qualify on income and credit who may not have the necessary additional down payment required for 80% and 90% conventional loans. The 3.5% FHA program has provided a great vehicle to get into a home with a minimum amount of cash.

For homeowners that expect to stay in their home for ten years or less, the new changes might not have much financial impact. Homeowners who expect to be in their home long term can refinance with a conventional loan without mortgage insurance once the equity has increased due to amortization and appreciation.

For buyers to avoid these increases, they will need to act now to get the FHA commitment issued prior to these change dates.


 
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Refinancing Again

by Pat Zaby

Refinancing Again

We're constantly bombarded by lenders to refinance our mortgage under a variety of programs. The volume of offers can almost make you numb to the rational consideration.

There are common rules of thumbs that homeowners and agents use such as not refinancing more often than every two years or there must be at least 2% savings from your previous mortgage rate may not always be accurate.

The reality is that if you can refinance for a lower rate and you'll be in the home long enough to recapture the cost of refinancing, it should be considered. The costs of previous refinancing that haven't been recaptured by monthly savings may need to be added to the costs of the new refinance.

Take a look at the chart that shows the average rates according to Freddie Mac for 2012. They are lower today than they were in January of 2012 and for the ten years before that.

Refinancing may save you a substantial amount of money, especially if you're going to be in your home for a long time. It is definitely worth investigating. To get a quick idea of what your savings could be, use this refinancing calculator.

Your Deduction...Your Choice

by Pat Zaby

 

 
Better
Homeowners
Pat Zaby
Seminars & Systems
5023 Sea Pines Drive
Dallas, TX 75287
(972) 407-1337
Pat@PatZaby.com
www.PatZaby.com

Taxpayers are allowed to decide each year whether to take the standard deduction or to itemize their deduction when filing their personal income tax returns.  Roughly, 75% of households with more than $75,000 income and most homeowners itemize their deductions.

The 2012 standard deduction, available to all taxpayers, regardless of whether they own a home, is $11,900 for married filing jointly and $5,950 for single taxpayers.

Let's look at an example of a homeowner couple with a $150,000 mortgage at 3.5%.  The standard deduction would give them $2,650 more than the total of their interest paid and property taxes of approximately $9,250.  If they were in the 28% tax bracket, the actual tax savings would be $742.00.

When mortgage rates were considerably higher, many people expected the interest and property taxes to easily exceed the standard deduction but with today's low rates, a comparison is certainly justified.

There are other things that could come into consideration like charitable contributions, medical expenses and casualty losses.  Tax professionals will compare available alternatives to find the one that will benefit the taxpayer most.

For more information, see www.IRS.gov and consult a tax advisor.


How Companies Can Earn Their Customers' Trust

by Samia S. Morgan

How companies can earn their customers' trust

Trust is a valuable asset, but it can also be extremely fragile, writes Nick Cowling, general manager of Citizen Optimum. Companies can foster trust by fulfilling their commitments, acting with integrity and building relationships with their customers. "If you can provide a human connection with a positive experience, it will provide your audience with a reason to trust you," he writes. HuffingtonPost.ca (Canada)/The Blog (2/25)

 

Samia Morgan is proud to be listed with the Better Business Bureau - 
BBB Accredited business since 03/01/1994

Your San Mateo Real Estate Advisor

BBB - TrustBrief - Advancing trust in the marketplace

Keep Your Receipts to Defend Your Tax Deductions

by Samia S. Morgan

Keep your receipts to defend your tax deductions

As a small-business owner, you should hang on to your receipts so you can prove that the deductions you claim on your tax return are legitimate, certified public accountant Mark J. Kohler writes. He recommends making electronic copies of your receipts and avoiding making purchases with cash, which can be hard to track. Entrepreneur online (2/22)

 

Samia Morgan is proud to be listed with the Better Business Bureau - 
BBB Accredited business since 03/01/1994

Your San Mateo Real Estate Advisor

BBB - TrustBrief - Advancing trust in the marketplace

How to Pick the Right Travel Agency for Your Next Trip

by Samia S. Morgan

How to pick the right travel agency for your next trip

Ask your acquaintances for recommendations, and check out BBB's website before selecting a travel agency, BBB recommends. You should confirm your reservations and pay for your trip with a credit card, BBB advises. Patch.com/Easley, S.C. (2/24)

 

Samia Morgan is proud to be listed with the Better Business Bureau - 
BBB Accredited business since 03/01/1994

Your San Mateo Real Estate Advisor

BBB - TrustBrief - Advancing trust in the marketplace

How to Prepare Your Small Business for Success

by Samia S. Morgan

How to prepare your small business for success

You will be better able to deal with challenges your company faces if you have an understanding of basic accounting, writes Steve Greenbaum, CEO and founder of PostNet. "A lot of small businesses fail because of mismanagement and undercapitalization," he notes. You should also act strategically to find new customers and develop a consistent brand for your business, he writes. Fox Business Small Business Center (2/22)

 

Samia Morgan is proud to be listed with the Better Business Bureau - 
BBB Accredited business since 03/01/1994

Your San Mateo Real Estate Advisor

BBB - TrustBrief - Advancing trust in the marketplace

Some Business Advocates Support Minimum-Wage Hike

by Samia S. Morgan

Some business advocates support minimum-wage hike

Some business groups oppose President Barack Obama's proposal to raise the federal minimum wage, but others are supportive of the idea. "If the customer base is undermined because wages are so low, they feel it directly," said Holly Sklar, founder of Business for a Fair Minimum Wage. Many small businesses already pay their employees more than the federal minimum wage to make jobs more appealing to qualified workers, experts say.Bloomberg Businessweek (2/21)

 

Samia Morgan is proud to be listed with the Better Business Bureau - 
BBB Accredited business since 03/01/1994

Your San Mateo Real Estate Advisor

BBB - TrustBrief - Advancing trust in the marketplace

Displaying blog entries 1-10 of 603

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Photo of Samia S. Morgan, Inc. Real Estate
Samia S. Morgan, Inc.
dba Samia Realty Group
BRE# 00967165
San Mateo CA 94403
650-678-3633