As you probably know, you are entitled to many excellent tax benefits in terms of home loan interest, property taxes, and other real estate-related issues. A few finer points to consider:

You can fully deduct most interest paid on home mortgages, but you first must distinguish qualified mortgage interest.

You might be able to deduct points, also known as loan origination fees, maximum loan charges, or loan discounts.

If you have a vacation home and you didn’t rent it out, you can fully deduct the mortgage interest.

For a deeper dive into any of these issues, you might want to check out the link to article I’ve included below (as well as consult with your tax professional on any of these issues if you have further questions).

Click this link:  Homeowner Tax Tips

Watch the video below from Brian and Frank. Feel free to share your thoughts in the comments below. Would love to know your opinion. Thanks!

Vincent van Gogh, Dutch painter (March 30, 1853 – July 29, 1890)
http://www.vangoghgallery.com/

Artists take risks. They pursue their vision, often without financial security, facing long odds while stewing in their own self-doubt. When the world tells them “it’s not safe,” they listen to their own voice despite “prevailing wisdom.” They have a vision and they pursue it.

Occasionally, if they’re very lucky, they get to look back on their life and see the path that lead them to create a masterpiece. At the time, the path wasn’t easy, yet in retrospect, it looks very much like the only possible path they could take.

I think in twenty years or even ten years, we’re going to hear the collective sound of people kicking themselves because they did not buy a home this year. As their teenage sons and daughters graduate and enter the future job market and begin searching for their first home, they’ll turn to their parents and say, “Seriously? You’re telling me when I was in middle school, you could get a 30-year fixed for under 5%?”

Too many remain terrified by the last great storm in the housing market. They stand now on the shores of incredible opportunity, but can’t shake the vision of all those values sinking into oblivion.

Think about the future. Who might need a home? Is there an opportunity to “be the bank” when the time comes? The descendants of those savvy collectors who bough a Van Gogh painting for mere dollars in 1885 are surely grateful for their grandparents’ eyes today, aren’t they?

Yes, there is uncertainty, but this is the calmest water you’re ever going to see. Set sail now and buy a home. Those that do will certainly be rewarded. As for the masterpiece? It will be the satisfaction of looking back and realizing they bought at just the right time.

There’s certainly no risk to exploring the opportunity. I’d love the opportunity to sit down with you and plot a possible course to the best investment you could make. Contact me today.

So let me ask you: Why would you wait for the housing market to improve before buying a house?

I understand there’s a lot of uncertainty out there. Job security is questionable, unemployment is high, and you’re not sure what it takes to get pre-approved for a home loan. It’s scary. But here’s the thing: Letting fear dictate your financial strategy for the future is a guaranteed way to pay too much for a house in the years to come.

Put fear aside for just a moment. Here are some facts:

• Interest rates are at or close to historic lows
• Prices for homes have plunged to the lowest levels we’ve seen in a generation
• Bank and government-owned property inventory is at an all-time high
• Rents are rising and rental inventory is shrinking (limited rental options!)

Shouldn’t you, rather than your landlord, be the one who benefits from owning a home? Right now is the “buy low” in the “buy low / sell high” cycle. Every day I help renters explore their purchasing power. You might be surprised just how qualified you are for home ownership.

If you’re curious simply contact me, or drop me a line and I’d be glad to have a no-obligation conversation about how you could own your own home.

Not only is eliminating junk mail a personal convenience, but it’s also good for the planet. Who hasn’t lugged 60 pounds of junk mail down to the curb on recycling night and thought, “I can’t believe all of this paper and ink is wasted.”?

Well, if you’re looking for a free and easy way to cut down on the unwanted catalogs, coupons, credit card offers, circulars (and more!), then be sure to check out CatalogChoice.org (http://www.catalogchoice.org).

Catalog Choice lets you opt out of direct marketers’ databases, ensuring that you receive less junk (and your privacy is protected). Register for a free account and you can immediately begin cutting down on all of that unwanted mail.

How does it work? Catalog Choice gets your opt-outs processed by the senders. You can track your opt-outs, and if you receive the mail again, Catalog Choice will follow up. They work with over 4000 companies to honor your choices and have processed over 20 million opt-outs by over 1.4 million account holders.

You can also directly opt out from unwanted offers directly from the big 3 credit bureaus; Transunion, Equifax and Experian. That site it www.optoutprescreen.com. You can opt out for 5 years electronically or permanently with a signed form. The FTC also has a very helpful site to get the facts on prescreened offers at this link.

Take control of your home’s mailbox today!

Like this tip? Sign up for my neighborly newsletter which includes even more helpful information: Please subscribe me to your helpful newsletter.

Important Note: Fannie Mae and Freddie Mac are scheduled to provide full details of the program, including information to lenders, by Nov. 15. The FHFA says some lenders may be able to start offering the program by Dec. 1, although most estimates are of a rollout in the first quarter of 2012 for most participating lenders. Chase Bank and mortgage lender Genworth have already indicated they look forward to participating.

Here’s what I know so far. Get a HARP refi quote now.

What Is HARP?

HARP was started in April 2009. It goes by several names. The government calls it HARP, as in Home Affordable Refinance Program.

The program is also known as the Making Home Affordable plan, the Obama Refi plan, and Relief Refinance.

In order to be eligible for the HARP refinance program :

1.Your loan must be backed by Fannie Mae or Freddie Mac.
2.Your current mortgage must have a securitization (originated and bought by either institution above) date prior to June 1, 2009
If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA/ VA or a jumbo mortgage, you are not HARP-eligible.

HARP : Questions and Answers

Do these question-and-answers account for the “new” HARP program?

Yes, everything you are reading is accurate as of today, October 25, 2011. This post includes the latest changes rolled out by the Federal Home Finance Agency on October 24, 2011.

How do I know if Fannie Mae or Freddie Mac has my mortgage?

Fannie Mae and Freddie Mac have “lookup” forms on their respective websites. Check Fannie Mae’s first because Fannie Mae’s market share is larger. If no match is found, then check Freddie Mac. Your loan must appear on one of these two sites to be eligible for HARP. Make note of how you type in your address at both these sites. Sometimes it must match exactly what is on your current mortgage statement.

If my mortgage is held by Fannie Mae or Freddie Mac, am I instantly-eligible for the Home Affordable Refinance Program?

No. There is a series of criteria. Having your mortgage held by Fannie or Freddie is just a pre-qualifier.

Is “HARP” the same thing as the government’s “Making Home Affordable” program?

Yes, the names HARP and Making Home Affordable are one in the same.

My mortgage is held by Fannie/Freddie. Now what do I do?

Find a recent mortgage statement and write “Fannie Mae” or “Freddie Mac” on it — whichever group backs your home loan — so you don’t forget. Give that information to your lender when you apply for your HARP refinance.

What if neither Fannie Mae nor Freddie Mac has a record of my mortgage?

If neither Fannie nor Freddie has record of your mortgage, your loan HARP-ineligible. However, you may still be eligible for a “regular” refinance to lower rates. Got to my site and request a quote to see your options. Or, if your mortgage is insured by the FHA, you can use an FHA Streamline Refinance.

Am I eligible for the Home Affordable Refinance Program if I’m behind on my mortgage?

No. You must be current on your mortgage to refinance via HARP.

Will the Home Affordable Refinance Program help me avoid foreclosure?

No. The Home Affordable Refinance Program is not designed to delay, or stop, foreclosures. It’s meant to give homeowners who are current on their mortgages, and who have lost home equity, a chance to refinance at today’s low mortgage rates.

What are the minimum requirements to be HARP-eligible?

First, your home loan must be paid on-time for the prior 6 months, and at least 11 of the most recent 12 months. Second, your mortgage must have been sold to Fannie or Freddie prior to June 1, 2009. And, third, you may not have used the HARP program before — only one HARP refinance per mortgage is allowed.

Is there a 125% loan-to-value restriction for HARP?

No, there is no 125% loan-to-value restriction. All homes — regardless of equity — are eligible for the HARP program.

I am really far underwater on my mortgage. Can I use HARP?

Yes, you can. There is no loan-to-value restriction under the HARP program.

Maybe I wasn’t clear. I am really, really far underwater on my mortgage. Are you sure I can use HARP?

Yes, I am sure. The new HARP program specifically has no loan-to-value restriction so that homeowners in Florida, California, Arizona and Nevada can take advantage of it. You can 300% loan-to-value, and still be HARP-eligible. HARP is now unlimited LTV.

Will my home require an appraisal with the HARP program?

Sort of. Although your home’s value doesn’t matter for the HARP program, lenders will run what’s called an “automated valuation model” (AVM) on your home. If the value meets reliability standards, no physical appraisal will be required. However, your lender may choose to commission a physical appraisal anyway — just to make sure your home is “standing”.

Is HARP the same thing as an FHA Streamline Refinance?

No, the HARP program is administered through Fannie Mae and Freddie Mac. FHA Streamline Refinances are performed through the FHA. The programs have similarities, however.

Do I have to HARP refinance with my current mortgage lender?

No, you can do a HARP refinance with any participating mortgage lender.

So, I can use any mortgage lender for my HARP Refinance?

Yes. With the Home Affordable Refinance Program, you can refinance with any participating HARP lender. Click here for a HARP rate quote from me.

I put down 20% when I bought my home. My home is now underwater. If I refinance with HARP, will I have to pay mortgage insurance now?

No, you won’t need to pay mortgage insurance. If your current loan doesn’t require PMI, your new loan won’t require it, either.

I pay PMI now. Will my PMI payments go up with a new HARP refinance?

No, your private mortgage insurance payments will not increase. However, the “transfer” of your mortgage insurance policy may require an extra step. Remind your lender that you’re paying PMI to help the refinance process move more smoothly.

What’s the biggest mortgage I can get with a HARP refinance?

HARP refinances are limited to your area’s conforming loan limits. In most cities, the conforming loan limit is $417,000. However, there are some cities in which conforming loan limits are as high at $625,500.

Can I do a cash-out refinances with HARP?

No, the HARP program doesn’t allow cash out refinance. Only rate-and-term refinances are allowable.

Can I refinance an investment/rental property with HARP?

Yes, you can refinance an investment/rental property with HARP, even if the home was once your primary residence. You can refinance a home on which you’re an “accidental landlord” via HARP. The loan must meet typical program eligibility standards.

Can I refinance a second/vacation home with HARP?

Yes, you can refinance an second/vacation property with HARP, even if the home was once your primary residence. The loan must meet typical program eligibility standards.

Are condominiums eligible for HARP refinancing?

Yes, condominiums can be financed on the HARP refinance program. Warrantability standards still apply.

Can I consolidate mortgages with a HARP refinance?

No, you cannot consolidate multiple mortgages with the HARP refinance program. It’s for first liens only. All subordinate/junior liens must be re-subordinated to the new first mortgage.

Can I “roll up” my closing costs with a HARP refinance?

Yes, mortgage balances can be increased to cover closing costs in addition to other monies due at closing such as escrow reserves, accrued daily interest, and a small amount of cash. In no cases may loan sizes exceed the local conforming loan limits, however.

I am unemployed and without income. Am I HARP-eligible?

No. Income verification is required for the HARP refinance program.

My original mortgage was a stated income loan. Will my income be verified with a HARP refinance?

Yes, with HARP, applicant income is verified in the same manner as with a traditional refinance — via a combination of W-2s, paystubs, tax returns and other, underwriter-requested documentation.

Do HARP refinances use Loan-Level Pricing Adjustments?

Technically, loan-level pricing adjustments (adjustments made to fees for a certain rate. The more risk, the more fees you’ll have to pay.) do not apply to HARP refinances, but borrowers may be subject to LLPAs based on their respective credit scores or home-types (e.g.; 2-unit, 3-unit, 4-unit). Loan-to-Value LLPAs are reduced and/or waived.

Is there a minimum credit score to use the HARP program?

No, there is no minimum credit score requirement with the HARP refi program, per se. However, you must qualify for the mortgage based on traditional underwriting standards.

Do I have to refinance my mortgage with my current lender?

In most cases, no. You can do a HARP refinance with any lender you want. Click here for a HARP rate quote from me.

What does the term “DU Refi Plus” mean?

“DU Refi Plus” is the brand name Fannie Mae assigned to its particular flavor of the HARP program. “DU” stands for Desktop Underwriter. It’s a software program that simulates mortgage underwriting. “Refi Plus” is a gimmicky-sounding term that could have been anything. The name has been trademarked, however. As an aside, Freddie Mac is using the branded name “Relief Refinance”.

Can I remove my spouse or a co-signer with a HARP refinance?

Maybe. HARP guidelines specifically prohibit removing a co-signer from the note, but there are circumstances in which you can remove a co-signer from the mortgage and from the deed so that the former co-signer has no ownership interest in the home.

For how long should I lock my mortgage rate via the HARP Program?

Lock for 45 days, at minimum. This is because the HARP program, while streamlined for simplicity, still has some grey areas that can lead to delay. It’s better to have a rate lock that lasts too long than not long enough.

When does the HARP program end?

If you are HARP-eligible, you must close on your mortgage prior to January 1, 2014 — 798 days from now.

How do I apply for the HARP program?

Go to my site to get a rate quote. If the rate looks good, you can accept it. There is no fee for applying.

Apply For Home Affordable Refinance Program

Lastly, don’t forget! The Home Affordable Refinance Program is not meant to save a home from foreclosure. It’s meant to give underwater homeowners a chance to refinance without paying PMI. If you need foreclosure help, call your current loan servicer immediately.

Good Luck!

Important Note: Fannie Mae and Freddie Mac are scheduled to provide full details of the program, including information to lenders, by Nov. 15. The FHFA says some lenders may be able to start offering the program by Dec. 1, although most estimates are of a rollout in the first quarter of 2012 for most participating lenders. Chase Bank and mortgage lender Genworth have already indicated they look forward to participating.

An innovative friend at the young age of 56 who still had a lot to give. Here was a man that is loved by millions and has enriched countless lives! He had Billions of dollars in the bank and yet on this day, we are wealthier than Steve Jobs.

Why? BECAUSE WE HAVE TODAY! And unfortunately Mr. Jobs does not.

How are you going to spend this wealth? Are you going to spend it on something that matters? I would encourage you to go out and spend your infinite wealth of today on something that matters. Live, inspire and enrich other lives  as Steve did and would have continued to do if given the chance.

Please… go out and make today count! Celebrate your gift of today.

Thinking Differently Now?

Michael

IPCs provide an incentive for a borrower to purchase a particular property, and in certain real estate markets, IPCs may be used to artificially inflate or maintain the sales price of a property. Fannie Mae has established definitive terms for what constitutes an IPC, specific limits on the use and permissible amounts of IPCs, and how IPCs in excess of permissible limits must be treated. These guidelines are designed to help avoid practices that may distort or artificially inflate the market value of properties.

Convetional Conforming Limits

• If you are buying a home as investment property or rental, the maximum contribution allowed by and interested-party is 2% of the sales price
• If you are buying a home as your primary residence there is a little more flexibility. At 9.99% down or less the maximum contribution is 3%. Put 10% to 24.99% down the maximum contribution by an interested-party is 5%. Lastly any more than 25% down and the interested party can contribute 9%.

VA Home Loans

• VA is a 4% limitation towards prepaids, discount points and other sales concessions (such as debt payoff).  On a VA, the seller can pay unlimited closing costs (appraisal, title, recording, loan fee, etc). There are also certain fees the Veteran isn’t allowed to pay, be sure to check with your lender on current guidelines. It’s important to note VA home loans are for primary residences only.

FHA Home Loans

• FHA still allows for an IPC of 6% regardless of the down payment. It’s important to note FHA loans are for primary residences only.

USDA Home Loans

• USDA still allows for an IPC of 6% regardless of the down payment. It’s important to note FHA loans are for primary residences only.

When IPCs exceed these limits they are considered sales concessions. For underwriting and eligibility purposes, the lender must make a downward adjustment to the property’s sales price to reflect the amount of any contributions that exceed the maximum limits. The maximum LTV/CLTV ratios must then be calculated using the lesser of the reduced sales price or appraised value.When IPCs exceed these limits they are considered sales concessions.

I often hear from clients who are worried about their parents (or themselves) when it comes to living in their home through their retirement years. There are lots of reasons why a dream home can become a retirement nightmare as we age. From safety issues to neighborhood concerns, there are numerous factors which impact whether or not a home is ideal as we get older. Consider:

1. Falling / slipping hazards. Are bathrooms designed with mobility challenges in mind? Are the surfaces we once loved (hardwood, tile, concrete) now slipping hazards?
2. Accessibility. Is a second story practical? Will stairs become a painful hassle in years ahead?
3. Entrapment. Could locks in the house be inadvertently engaged, trapping a resident in a back bedroom or bathroom without access to medicine or lines of communication?
4. Right-sizing. Is the home still appropriate for the number of residents? Will it be a maintenance or upkeep hassle now that kids or spouses may no longer be in the house?
5. Neighborhood safety. How as a neighborhood improved or declined in recent years? Whatʼs projected to happen in the next 10? 20?
6. Walkability. Are you planning to keep and drive a car as you age? How close are grocery stores, drug stores, hospitals, entertainment venues, and restaurants? Are you in a relatively isolated area? How close do you want your neighbors to be?

This is but a fraction of the full list, but a good place to begin thinking about the years ahead.

I love helping home owners evaluate properties with an eye on getting the most out of retirement.

If youʼre interested in a free consultation with these issues (and more!) in mind, please donʼt hesitate to me today. 503-451-0344 or you are welcome to email me!

The rate is 4.40% and 3% (of the Note amount) cash assistance is available for down-payment, closing costs, or prepaids.

Funds are limited so get your reservations in SOON!

Stop by my page www-Michael-Eiden.com and get prequalfied!