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01-19-2013 10:56 PM
Right but rates will be going up so refinancing won't be as attractive and may not save any money. If you read the article closely it said that the new rules will go into effect shortly after the announcement on or before March 31st. So it is best to get in now if you can.
What happens to people who are in the process but can't close yet since it's a new build? I hope we can be grandfathered in if there is a change because it would be BS otherwise.
I would assume as long as you had a case number with FHA (under contract) by the deadline you should be fine. Thats how we got out of paying the upped FHA fees last year.
01-20-2013 10:23 AM
01-20-2013 10:29 AM
01-20-2013 10:31 AM
The $3600 back is what my broker estimated from writing off the interest and property taxes at tax time. We are buying a $347,900 home so the write off amount is quite substantial. The $3600 doesn't take into account the mortgage insurance that is now deductible again so I will get more than $3600. Our property taxes are $3100 a year...not a trivial amount there either. So I'm looking forward to April 15, 2014. LOL! This is the nice part about owning a home...itemized deductions!
Those aren't tax credits though, are they? Don't they just reduce the amount of money you are taxes on (tax deduction)? Also, you need to itieize deductions in order to claim it right? Maybe with a home it will be different but we've always taken the standard deduction.
01-20-2013 10:45 AM
01-20-2013 10:46 AM
01-20-2013 01:48 PM
01-20-2013 01:53 PM
01-20-2013 09:19 PM
Just to clarify, there is no mortgage insurance tax credit for the 2012 tax year. The mortgage insurance, just like mortgage interest and property taxes, can be deducted as an itemized dedcution for the 2012 tax year. The amount of the deduction that you may be entitled to will vary for each individual person and the exact amount will be determined when you file your income tax return.
The amount of a tax deduction determined by a realtor, and not a tax professional, should be taken with a grain of salt. In addition, you must be careful to not determine your affordability of a mortgage payment on a tax deduction, because there is a possiblilty that the deduction may not be available in the future.
01-21-2013 02:50 AM