Uncle Sam Givith and Takith Away!

By
Real Estate Agent with RE/MAX Results St Cloud Mn real estate

Uncle Sam Givith and Takith Away!

Does that banner really say a new deal for the ants?

there are a few funny lawyersI have know a number of attorneys over the course of my Real Estate career, and some of them know, and tell the best lawyer jokes. Example:

Do you know how cold it was yesterday?

It was so cold I saw my lawyer walking down the street and he had his hands in his own pockets!


Now try substituting Senator for lawyer and you will be most timely, because last week the U.S. Senate extended the payroll tax cut, reducing what they withhold from folks paychecks. This is a temporary measure to stimulate spending, etc. As part of this extension they included an increase in Mortgage Insurance Premiums (MIP) on Fannie Mae, Freddie Mac and FHA loans, for new purchases and refinances, beginning January 1, 2012. This change will likely be permanent, and represents about a 33% increase in the monthly MIP on 90% of all loans written. 

It adds up!

The bill extends for 2 months the payroll tax cut and long term unemployment, as well as Medicare reimbursements for doctors. The House of Representatives is supposed to vote on the bill this week. The increase in MIP is meant to offset the $33 Billion price tag for these programs. For a mortgage amount of $200,000, this increase is about $17 per month. About $204 per year, every year.

All of the homeowners that have weathered the last few years and still own their homes will, if they refinance after January 1, 2012, have a new tax added to their monthly mortgage payment. The same goes for those who buy a new home after January 1st unless they bring a 20% down payment to closing, thus avoiding MIP entirely. In our market I would guess the average home buyer will be paying the extra fees for a while, until the build enough equity to discontinue the MIP.

It may be to late, but you can still try to contact your Representative in Congress, but my guess is they won't vote against the giveaway extensions. But we will end up paying for it, one way or the another!

 

Posted by

Steve Baklaich RE/MAX Results  www.stcloudareahomesforsale.com 

Cell:320-260-3290 Saint Cloud Minnesota Real EstateQR code to Google Places Page

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If you are relocating to central Minnesota check out all the wonderful reasons to love St Cloud. It is a wonderful area full of things to do and lots of great houses. I would welcome the opportunity to help you find your perfect place here. Visit my St Cloud real estate website for more information about buying or selling a home, or property in the central Minnesota real estate market.

 

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Rainmaker
1,018,216
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The only hope that we have is that since the house did not pass their bill they will rethink this.

Dec 19, 2011 05:23 PM #1
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Tim:The talk is they may send it to committee. I only hope if this does go through that the Keystone pipeline stays in the bill.

Dec 19, 2011 05:30 PM #2
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Taxpayers again will foot the bill. This is another tax in disguise that homeowners will have to pay if they want to buy a home, or refinance. Thanks for bringing the increase in MIP to our attention.

Dec 19, 2011 05:32 PM #3
Rainmaker
1,939,774
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi  Steve,     I really love the Lawyer  joke...thanks for sharing

Dec 19, 2011 06:11 PM #4
Rainmaker
589,727
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Steve,

This is discouraging news.

The burden of taxes continues to increase on the citizens day by day.

Thanks for sharing

Phil

 

Dec 19, 2011 09:11 PM #5
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Pamela, These laws are so large and encompass so much the legislators don't even know what they are passing. Anytime I find something like this I feel people would like to know. NAR should have already told us.

Dec 20, 2011 05:34 AM #6
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Ronald, One of my faults is telling lawyer jokes, but I actually know some good attorneys.

Dec 20, 2011 05:36 AM #7
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Phil, I have seen lists of all the taxes we pay, daily, and after my initial shock I realized the list was incomplete. Everything we do is taxed, sometimes more than once, and I don't see many of the benefits.

Dec 20, 2011 05:39 AM #8
Rainmaker
320,000
Randi Brammer
Randi Brammer, Acctg. - Hinckley, MN
Accountant & Tax Preparer

It does not make sense.  The amount that people will ontinue to get does not prime the pump.

Dec 20, 2011 07:46 AM #9
Ambassador
942,052
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

The House Republicans decided against the two month extension after all.  How funny is that?

Dec 20, 2011 08:55 AM #10
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Randi; I agree. We have seen all our expenses go up beyond that stipend. When people feel more confident we will get it going for real.

Dec 21, 2011 02:57 AM #11
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Suzanne; I am not laughing, but am not surprised. Politics!

Dec 21, 2011 02:58 AM #12
Rainmaker
240,332
Patti Ann Kasper
EXIT REALTY NEXUS - Blaine, MN
Blaine & North Metro Minneapolis St Paul Real Esta

Another reason why there needs to be a line-item veto.  I absolutely HATE when they combine issues like this...  Unemployment and the payroll tax cut naturally go together.  But the MIP should be handled separatly.  Geez I wonder what else is in that bill.

Great lawyer joke!!!

I was just reading an article earlier that brought up a good point...  Our Congressmen and Congresswomen are millionaires.  They cited 3 reasons: (1) You have to be rich to run for Congress in the first place, (2) they can LEAGLLY use insider information to trade in the stock market, and (3) they start running for re-election as soon as they are sworn in.

Maybe we would get better decisions if the people making them knew what it was like to live on a "normal" income with no favors or quid pro quo's.  OK, I can dream, can't I?

Dec 28, 2011 05:10 PM #13
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Hi Patti Ann: One big item in the bill (that I am in favor of) is the Keystone Pipeline authorization.

The re-election cycle never ends for Congress persons, as the term is only two years, so yes, they are always fund-raising and politicking.

Term Limits anyone? And while we're at it, I would love to abolish the lifetime pensions & benefits.

Dec 30, 2011 06:16 AM #15
Rainmaker
875,539
Debbie Walsh
Shahar Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

Happy New Year - I wish you much success for 2012!

Jan 01, 2012 03:42 AM #16
Rainmaker
186,951
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Thank you Debra. All th e best to you also.

Jan 01, 2012 03:46 PM #17
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Rainmaker
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Steve Baklaich

Treating Buyers & Sellers to Full Service Always.
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