mortgage: How to Successfully Get a Mortgage in 2019 - 09/09/19 10:51 AM
 
If you've traveled on an airplane recently, you probably went through a security check at the airport.  These security checks are required by a federal law called the USA Patriot Act.  This very same law has a provision that requires mortgage companies, banks, and financial institutions to document your source of funds when you buy a house or refinance a mortgage.  In short, the US government has recruited mortgage lenders in its fight against terrorism!  In fact, lenders are required by law to ask you for:
The exact source of funds used for your down payment and earnest money deposit. … (1 comments)

mortgage: Summer 2019 Guide to Mortgage Rates - 06/03/19 09:20 AM
 
Mortgage rates are determined by the supply and demand for mortgage bonds in the bond market.
Why Mortgage Bonds? When you get a mortgage in the US, your mortgage company is getting the money from Fannie Mae, Freddie Mac, or other "securitizers". These "securitizers" get their money by issuing bonds to bond market investors.  These bonds are called "mortgage bonds" or "mortgage-backed securities".  Therefore, the mortgage rate you pay is really determined by the supply and demand for mortgage bonds in the bond market.

The Role of the Federal Reserve As you can see from the chart, the Fed owned … (1 comments)

mortgage: Real Estate Investors Now Get a Special 20% Tax Deduction - 04/16/19 06:28 AM
 
The IRS recently issued some guidelines that allow real estate investors to take a tax deduction for up to 20% of the income they generate from rental properties. These guidelines were issued in January 2019 to clarify certain provisions of the 2017 Tax Cuts and Jobs Act. Click here to view the full announcement and the new guidelines.
The new tax deduction is generally available to eligible taxpayers with 2018 taxable income at or below $315,000 for joint returns and $157,500 for other filers. Those with incomes above these levels are still eligible for the deduction but are subject to limitations. … (1 comments)

mortgage: How to Solve Your Negative Equity Problem - 04/08/19 09:18 AM
 
One out of every ten homeowners in America owes more on their mortgages than the value of their homes. You may want to consider the "cash-in mortgage" strategy if you're in that situation. You can use this strategy to reduce your mortgage in order to refinance your loan into a lower payment.  You can also use the strategy to sell the property without having to do a short sale.

Cash-in Mortgage Refinance Using cash to pay down your mortgage may allow you to refinance into a lower interest rate and lower your monthly payments. For example, consider a homeowner who … (1 comments)

mortgage: How to Successfully Get a Mortgage in 2019 - 04/01/19 09:23 AM
 
If you've traveled in an airplane recently, you probably went through a security check at the airport.  These security checks are required by a federal law called the USA Patriot Act.  This very same law has a provision that requires mortgage companies, banks, and financial institutions to document your source of funds when you buy a house or refinance a mortgage.  In short, the US government has recruited mortgage lenders in its fight against terrorism!  In fact, lenders are required by law to ask you for:
The exact source of funds used for your down payment and earnest money deposit. … (2 comments)

mortgage: How to Swim With the Sharks (and not get eaten alive!) - 03/25/19 10:49 AM
 
Getting a mortgage today is a lot like swimming in a pool filled with sharks.
My role is to help you navigate these dangerous waters and get you to the other side safely. Here are just a few of the sharks we'll need to watch out for:

Buy-Back Sharks Most mortgages today are sold after the closing to large financial institutions like Fannie Mae and Freddie Mac. These gigantic companies are in business to make money... a lot of money. These sharks have been under a lot of pressure by the government lately, and they're circling the waters looking for … (1 comments)

mortgage: Two Ways to Benefit from Rising House Prices - 03/18/19 10:22 AM
 
House prices have gone up in many markets across the country. This chart illustrates what rising house prices could mean for you based on your home value and the rate of appreciation in your neighborhood. Here are two ways you may be able to benefit if your home has gone up in value:
1 – Cash-out Mortgage Refinance
You may be able to access some of your newly created home equity by refinancing your mortgage into a higher-balance loan. Cash-out proceeds may be used for:
Debt consolidation – pay off other debts with higher interest rates Home improvements – make new indoor … (1 comments)

mortgage: Two Ways to Win a Bidding a War - 02/04/19 08:28 AM
In today's housing environment, you will most likely compete with multiple offers when you go to buy a house.  Here are two strategies you may want to consider if you’re serious about winning a bidding war:
1 – Offer More Than the List Price
Money talks.  Imagine if someone offered you an extra $5,000 or $10,000 for something you’re trying to sell.  It would certainly catch your attention.  The question becomes, how likely is it that the buyer can actually follow-through and get you that extra money?  If you’re the buyer in this scenario, it’s crucial to get a solid mortgage approval BEFORE you … (0 comments)

mortgage: The Rules of 25 and 72 - 01/28/19 08:31 AM
 
Here are two easy-to-remember formulas that can be very useful as you budget for retirement:
 
The Rule of 25 – How much “critical capital” do I need?
According to this formula, if you multiply the annual income you need by 25, that’s approx. how much money you need to save in order to retire.  This would allow you to live off your retirement assets without dipping into principal.  This assumes your after-tax rate of return during retirement is 4%. 
For example, if I want to generate $60,000 per year in after-tax retirement income, I would need to save a … (3 comments)

mortgage: Two Reasons Why You Should Keep Your Home Improvement Receipts - 01/21/19 08:49 AM
 
1: Ability to Deduct Your Mortgage Interest: If you take out a mortgage for home improvement purposes, the IRS may ask you to prove the project was a "substantial improvement" that:
Adds to the value of the home, Prolongs the home’s useful life, or Adapts the home to new uses.  For example, painting a room may not qualify, but an addition or a new kitchen may qualify. Keeping the receipts from your home improvement project would go a long way toward proving this. Also, keep in mind that the IRS gives you 24 months to reimburse yourself for improvements made in the past, or … (0 comments)

mortgage: 3 Ways to Avoid Getting Outbid on Your New Home - 01/14/19 09:14 AM
Bidding for a new home can get pretty fierce in today's market.  Here are three potential solutions to avoid getting outbid on your new home:
Turn in your loan paperwork BEFORE you place an offer.  In many cases, you are bidding against cash buyers who don't need to wait for financing approvals.  Look at it this way:  if you were the seller, would you prefer to do business with a buyer who needs to wait for financing approvals or a cash buyer who can close the deal quickly?  With that in mind, it's important to be proactive and provide your mortgage … (1 comments)

mortgage: When is Mortgage Interest Tax Deductible? - 01/07/19 08:35 AM
  
 Contrary to popular belief, mortgage interest is not always tax-deductible.  Here's the inside scoop:

1. Do you itemize your tax deductions? You cannot take the mortgage interest deduction if you are taking the standard deduction. In 2018, the standard deduction is $12,000 for single taxpayers, $18,000 for heads of household, and $24,000 for married taxpayers filing a joint return. Please see a CPA for details.

2. Is Your Home a "Qualified Residence"? Mortgage interest is only deductible if the mortgage is attached to a "qualified residence". Taxpayers can generally deduct the mortgage interest on two qualified homes:
One Primary Residence; … (2 comments)

mortgage: How to Understand Annual Percentage Rate (APR) on Your Mortgage Loan - 12/26/18 07:32 AM
  The federal government requires mortgage lenders to disclose the "annual percentage rate" (APR) whenever they advertise a loan program. But what is APR, and does it really matter to you? Here's the thing: APR lumps all your "finance charges" into your interest rate. As you can see from the list below, some of your closing costs are considered "finance charges."  APR is calculated by adding all these finance charges to the total interest that you'll pay over the life of the mortgage. An annual interest rate is then calculated based on that total number.
APR Closing Costs & Prepaid Items … (1 comments)

mortgage: How the Fed Impacts Mortgage Rates - 12/17/18 09:36 AM
 
The Federal Reserve Open Market Committee (FOMC) meets at least eight times per year to discuss and vote on US monetary policy. The Fed controls the Fed Funds rate, which is essentially a bank's cost of money. When the Fed increases the Fed Funds rate, short-term interest rates such as the Prime rate and LIBOR go up. These are often used to determine interest rates on adjustable rate mortgages, home equity lines of credit, credit card balances, and business loans.
However, interest rates on fixed-rate mortgages are not tied to changes in the Fed Funds rate.  Mortgage rates are determined by the supply and demand for mortgage bonds in … (2 comments)

mortgage: Three Ways to Increase Client Referrals - 11/12/18 05:43 AM
    Many clients today have indicated a willingness to refer you business, but very few actually follow through.  Here are three potential solutions that we can explore together:
 
 
How to Be More Relevant to Your Clients.  Many financial advisors don't spend any time on database marketing.  Other advisors blast their clients with generic newsletters.  What if you could be different?  Here's an idea to consider: personally call just one of your clients per day... every day for the next 100 days.  During the conversation, discover your clients' current life priorities and give them something of tangible value that … (4 comments)

mortgage: 3 Reasons Why Homebuyers Should Consider Seller-Paid Points - 10/29/18 04:49 AM
  "Seller-paid points" are where the seller pays points to reduce the interest rate on your mortgage.  Consider a home where the list price is $300,000 and the seller is willing to accept a bottom line of $291,000.  If the seller reduces the price by $9,000, you would be able to purchase the home for $291,000.  Both you and the seller would be happy.  However, what if you purchase the home for $300,000 and ask the seller to contribute $9,000 toward your closing costs?  The seller still walks away with his/her bottom line of $291,000.  However, there are three extra benefits … (1 comments)

mortgage: 3 Questions to Ask Yourself for a Happier Retirement - 09/17/18 09:11 AM
 
#1: What does retirement mean to me? Many people think of retirement as a time in your life where you can work if you want to, but not because you have to. In other words, how would you feel if you could work for fun and/or pursue your passions without worrying about money? This requires financial independence, or having enough money to:
Cover your needs and basic wants After taxes After inflation For some period of time (usually you and your beloved's lifetime) The amount of money necessary for financial independence is called "Critical Capital". This is a pile of … (2 comments)

mortgage: Forgiven Mortgage Debt in 2018 |Tracy| San Joaquin County - 05/21/18 11:33 AM
The tax break for forgiven mortgage debt expired January 1, 2017. This means that you will be required to pay income taxes on any mortgage debt that's forgiven you. For example, if the lender forgives you $50,000 in debt, and your income tax bracket is 25%, you would owe the IRS $12,500!
 
 
 
The "Insolvency" ExceptionHere's an interesting twist: there's no tax on the forgiveness of debt if you are "insolvent" at the time of debt cancellation. Insolvent simply means that your total debts are greater than your total assets. In our example, assume your total assets are $20,000 and your total liabilities … (1 comments)

mortgage: WHAT IS MORTGAGE PLANNING? - 04/30/18 06:56 AM

 
Mortgage Planning is the process of carefully evaluating your mortgage options and choosing the right mortgage strategies. Your mortgage is most often your single largest debt, and your home is most often your single largest financial investment.  That's why mortgage planning should not be a do-it-yourself endeavor, but rather a collaborative effort with your Certified Mortgage Planning Specialist (CMPS®).  Here's how the mortgage planning process works:
    STEP #1: OUR INITIAL CONVERSATION WILL FOCUS ON: What does your current housing and cash flow situation look like? What are your new housing and cash flow objectives? What large expenses should … (1 comments)