Who Qualifies for the $6500 Homebuyer Credit? Baltimore Sun
We have had lots of reader questions about the homebuyer credit for long-time residents. The blog - and yesterday's column - addressed some of the nagging questions from readers.
Mark Steber, chief tax officer for Jackson Hewitt Tax Service, has graciously answered some more of the housing credit questions here as well as some others:
Q. I purchased a house six months ago. I’ve owned one for 10 years but do not live in it or get rent I allow my parents to live there for free. Are there any deduction possibilities for the new house in California, if that makes a difference?
A. You can deduct the interest and real estate taxes on both homes since they are in your name and you pay the mortgage. If you have not owned a principal residence, the one you live in, during the three years preceding the purchase of your new home, you may qualify for up to $8,000 with the First-Time Homebuyer Credit.
However, keep in mind that there are tax benefits that you may be eligible for if your parents qualify as your dependents by meeting certain requirements:
Refinance Help. Fill this form and get help!
5 yr interest only ARM (100% financing Signed: 9/2006) - West LA - Refinance now?
I have a couple questions.
First, I got a 5 yr interest only loan (80/20 100% financing) in September 2006. I live in El Segundo, California. (Westside of LA) I purchased my home for $740K. Zillow and other 'rough estimate sites' have it currently at $810K. Avg home prices in the area have dropped 5-10%. We think we will be in the home for at least another 3 years. Maybe 4-5 years. Given that, would refinancing to a fixed rate loan right now make sense? Any advice would be great.
Two: In the next 18-24 months we would need to add a bedroom/bath (500 or so sq feet) onto our 2 bedroom/1.5 bath 1400sq ft ranch style home. We have plans drawn up and an estimate of $80K to do the one story add on. Should I wait to refinance until we need to start the remodel? If I take the architect approved plans into the bank, will the bank allow me to refinance for the current value of our home (1400 sq ft) + the estimated value of the addition (500 sq ft).
What's the smartest way to proceed?
Thanks
YES! If you're eligible do it ASAP.
Part two - you're not going to like my answer. I would not put more money in my house until I had money in the bank. If you can re-fi and save $40,000 a year then you can put on that addition. You're neck deep in debt and want to take on more?
That's scares me.
It's much more difficult to get interest only and/or 100% loans right now. Underwriting has tightened up. Not sure you can swing the refi, and probably not the extra addition.
10 california in interest only refinance year - News
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10-Q: INTEGRATED HEALTHCARE HOLDINGS INC The additional borrowings resulted from delays in Medi-Cal payments from the State of California. The reduction in the interest rate for the additional |
US Housing Plan to Fund Interest-Rate Reductions
Washington Post Foreclosure filings in the US surged 81 percent last year to 2.3 million, the highest on record, as home prices fell and tighter mortgage standards made it How Banks Are Worsening the Foreclosure Crisis
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Mortgage Rescues Fail as Price Drops Spur Defaults The government’s Hope for Homeowners program, created last year to refinance troubled loans into fixed-rate mortgages, has been shunned by lenders in part |
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NBR Transcripts-February 13, 2009 - Nightly Business Report NBR Transcripts-February 13, 2009 Standard & Poor's figured about 20 percent of the mortgages in our pool will refinance and fall out of the pool every year. Another 20 percent will default |
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Homeowners refinance at lower mortgage rates - The News-Press Homeowners refinance at lower mortgage rates When California state employee Tim McManus peers into the future, he sees 4.5 percent interest. “I’m hoping it will go down more. |
