I can’t believe I am posting this – once again rates dropped last week, setting near all-time lows set earlier this year.
Mortgage markets improved last week as news from the Federal Reserve, the U.S. economy, and Europe combined to spur new demand for mortgage-backed bonds. Continue reading
Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there’s concrete cause for optimism.
The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. Here in Sacramento, the hit has been much larger (30% to 50%). And while some areas have fared better as compared to others, in general, home values are down. Continue reading
This is for my good friend Mark! We were at a year-end get-together (aka Drinking beer at the pub) with my rowing crew and he kept reminding me that rates are dropping. Thank you Mark! As mortgage rates drop, so do housing payments. It’s a good time to consider refinancing your home, or making an offer on a new one. Mortgage payment affordability has never been so high in history. Continue reading
Click here for video presentation!
The answer lies on Wall Street – specifically the trading of Mortgage Backed Securities (MBS). MBS trading can result in a dramatically higher or lower payment when you are ready to lock in your rate. Unfortunately, the indicators needed to see these real-time MBS trading feeds, are not readily available to the public. The big question is – are they keeping track of rates in real-time and making you aware of sudden changes in the market? Continue reading
Imagine beating your current market interest rates by 1% if you qualify for a relatively unknown tax strategy. And it’s legal, by the way! Do I have your attention?
Well, if you are a first-time home buyer and you don’t mind filling out a few extra forms, this tax credit can save you thousands. It’s a Mortgage Credit Certificate (MCC) issued by certain state and local governments that allows a taxpayer to claim a credit for a portion of the mortgage interest paid during a given year.
Let’s talk about the difference between a “tax credit” and a “tax deduction”. A tax credit is a dollar-for-dollar savings that lowers your total federal income tax liability by the value of the credit. Whereas, a tax deduction only reduces a percentage of the amount deducted. We are talking quarters versus dollars here. Tax credits can be more valuable than deductions, although somewhat more difficult to qualify for. Continue reading