| finance.yahoo.com - The average rate on the 30-year fixed mortgage fell again this week to a record low. The eighth record low in a year is attracting few takers because most who can afford to buy or refinance have already done so.
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| On January 22, 2012, prices for most Postal Service mailing services will change. This includes First-Class and Standard Mail, Periodicals, Package Services and Extra Services. Here are the changes for First-Class Mail:
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PROPERTY TAX DEDUCTIONS NO MORE!
CoCoTAX UPDATE January 10, 2012
Most people deduct their entire property tax bill when they do their income taxes, but that is incorrect. Nobody has really been checking that closely. That is all about to change as the state of California seeks additional revenue. Beginning with the 2012 tax year (the tax that is due April 15 of 2013), the state is going to require a breakdown between deductible and nondeductible items from your property tax bills.
State law follows Federal in that you are only allowed to deduct the portion of real estate taxes that is based on assessed value of your property with some limited exceptions. Big dollar deductions could be eliminated particularly for those living in a Mello-Roos fee area. It also means that parcel taxes, sewer charges, and items like the Mosquito and Vector amounts are not deductible. A sample Contra Costa County Property Tax bill showing deductible vs. nondeductible items can be found below:
https://www.ftb.ca.gov/individuals/Real_Estate_Tax_Deduction/contra_costa_sample.pdf
The State Franchise Tax Board has information about the deductions at the following location: https://www.ftb.ca.gov/individuals/Real_Estate_Tax_Deduction/index.shtml
Great news …
On January 3, 2012, in Breaking News, Economics, by Robert Freedman
The National Association of Realtors released its latest pending home sales index figure last week and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.
NAR Chief Economist Lawrence Yun is upbeat about 2012 because in a number of areas indicators are pointing upward. Not only are home sales up but housing starts are up and home prices are stabilizing in many markets and heading up in some. In areas where they’re still down, the declines aren’t that great. More fundamentally, broader U.S. economic signs are looking positive, including the all-important jobs picture. About 100,000 job are being created a month, and that could rise to 150,000—still not a quick enough pace to get us back to where we were before the downturn but the headwinds are in the right direction.
It seems that I have been asked this question a lot recently, along with does a bedroom have to have a closet. According to the California Building Code, a room is considered a sleeping room when it meets the following General Habitable Space Requirements:
· No plan dimension shall be less than 7’-0”.
· Minimum ceiling height of 7’-6” (may be lower if building was constructed prior to 1942.
· Minimum net floor area of 70 square feet.
· Natural ventilation equal to a minimum of 4% of the floor area of the room.
· Natural light equal to a minimum of 8% of the floor area of the room.
· Heating system capable of maintaining a minimum indoor temperature of 68 degrees F at a level of 3’-0” above the floor.
· Closets are not required.
There are other Bedroom Specific Requirements. Please contact me if you’d like more information.
It’s that time of year again…The first installment of property taxes were due and payable on November 1st, and delinquent if not postmarked by December 10th at 5:00 p.m. That’s today! You can pay by internet … go to www.cctax.us
The limit to conforming loans was reduced to $625,500 on October 1, 2011, when a previous increase in conforming loan limits expired. With the passage of this legislation, the FHA loan limit has been restored to $729,750. While the loan limit has been increased for FHA loans, the increase does not affect limits for conventional loans backed by Fannie Mae or Freddie Mac.
Higher loan limits give borrowers another home-financing option to consider in high-cost areas of the country, such as California and New York. Borrowers could take out a jumbo loan, which typically requires a larger down payment. They now have the option of using an FHA loan with a lower 3.5% down payment requirement.
How can this be a great time to purchase? After all, we have been living through a prolonged real estate slump. Yet that is exactly what I am saying to you. The question is—why do I think that this is the right time to purchase. If you are in the right position—you can be an opportunist!
There are several reasons for the advantages of purchasing now instead of waiting for a “better” market—
• The bargains are out there—now! Many sellers are desperate with so many listings including foreclosures on the market.
• Housing prices are lower and interest rates are very affordable because of recent Federal Reserve Actions. This means that housing is more affordable than it has been in a generation.
• Rental rates are going up. If you want to purchase a rental home or turn your existing property into an investment property, cash flows can be very favorable. If you are renting, owning may be less expensive in the short-run and save you hundreds of thousands of dollars in the long-run.
Just picture yourself on the huge wraparound veranda with Bay views, sipping mint juleps and enjoying life! Architecturally unique one level 3128 square foot home with 4+ bedrooms and 3 baths, built around central courtyard. Huge Living Room with walls of glass; large Master Bedroom with fireplace and 3 walk-in closets! (Even Imelda would be envious!!) Separate library; wood floors. Sprawling lawn on .42 acre lot plus adjacent .20+/- acre lot, make this a fantastic value! Offered at only $749,000.
View virtual tour www.4825AudreyDrive.com
BREAKING NEWS: Senate Passes Measure to Restore Higher GSE Loan Limits
IT NOW MOVES TO THE HOUSE!
STAY TUNED!
Friday, October 21, 2011
The Senate late Thursday approved an amendment to restore the $729,750 maximum loan limit on government-back mortgages for two more years. Sponsored by Senators Robert Menendez, D-N.J. and Johnny Isakson, R-Ga., the measure rolls back the October 1 reductions in Fannie Mae, Freddie Mac and FHA/VA loan limits in high cost areas.
The expiration of the higher loan limit has "made a weak housing market even weaker,” said Sen. Menendez during the Senate debate. “If we don't get that weak housing market moving again, we won't get the kind of robust economic recovery that Americans deserve.”
The Menendez-Isakson amendment also restores the FHA loan limit to 125% of the median house price in low cost areas. It was reduced to 115% on October 1.
The Senate approved the loan limit amendment by a 60-38 vote. It now moves to the House. It took a minimum of 60 votes under Senate rules to approve and attach the amendment to a Department of Housing and Urban Development appropriations bill. The National Association of Realtors lobbied heavily to get the necessary votes, officials said. To cover possible losses on higher balance Fannie/Freddie mortgages, the amendment imposes an annual 15 basis point fee on “jumbo GSE” loans.
Source: National Mortgage News
