10 Often Overlooked Real Estate Tax Deductions
- Home acquisition mortgage loan fees: If you bought your primary or secondary home in 2009 you probably obtained a mortgage to finance the purchase. That mortgage is called an “acquisition mortgage” because it enabled a purchase of the residence. If you paid a loan fee to obtain that acquisition mortgage, usually called “points”, that loan fee qualifies as an itemized interest deduction. Each point paid equals 1 percent of the amount borrowed.
- Home Improvement loan fees: If you paid a loan fee to obtain a home improvement loan, that loan fee is fully deductible in the tax year it was paid.
- Loan fees paid to refinance a home loan or borrow against other real estate: If you refinanced your existing home loan in 2009, or borrowed against other real estate, such as an apartment building, any loan fee you paid must be deducted over the life of the mortgage; i.e., if you paid a $1,000 loan fee to refinance with a new 33-year home mortgage, you can deduct $33.33 for each of the next 30 years.
- When refinancing, deduct any undeducted loan fees: Thanks to low mortgage interest rates, many home owners with equity in their homes refinanced in 2009. These home owners should remember to deduct on the 2009 income tax returns any undeducted loan fees from prior mortgage refinance.
- If you bought or sold property in 2009, remember to deduct prorated real estate taxes: A major tax deduction many real estate buyers and sellers overlook is the prorated property tax they paid at the close of escrow. Even if the other party remitted the payment to the tax collector, but your were charged a prorated portion of the tax bill, be sure to deduct your share on your 2009 return. Read the rest of this entry »
Valley Center Market Trends January 2010
Valley Center Real Estate Trends
Our last look at Valley Center Real Estate trends was in our article Valley Center 92082 Homes Sold November 2009.
At that time we were seeing a bit of a slow down in the market, but according to this months report we are seeing some positive improvements in just the last couple of months.
January 2010 home sales in Valley center are looking good. The number of closed sales more than doubled from November with 14 total in January as opposed to just 6 in November.
The total number of active listings is down from 101 to 84. This could cause a shift upward in home prices if the inventory doesnt improve soon.
The average sold price increased from $402,150 in November to $459,285 in January and an increase in price per square foot went from $143.56 to $161.44.
Overall, the real estate market is looking good in Valley Center. Although many homeowners bought at the top of the market and feel the prices have a long way to go till they get back to where they were in 2006-2007. The general consensus is that it will be about another 5 years before we see values like that again.
With that in mind, if you are a buyer looking for a good value and investment, Valley Center is one of your best bets in San Diego County. You get plenty of elbow room, nice homes, good schools and just down to earth good people for neighbors.
If you happen to be a seller in Valley Center and you cant wait 5 years or more for the market to come back to where it was a few years ago, we have options and solutions to help you.
Give us a call, we will give you honest up front advice, whether we help you sell your property or help you find other solutions, we are here to help.
Pam Parton and Joanna Woolley
760-580-1615 or 760-580-1630
How is your credit?
Most people at one time or another try to improve their credit to be able to secure the best rate for a mortgage, car loan or to just repair their damaged credit.
Here are some helpful tips to improve your credit score;
DO pay your bills before the payment is due preferably as soon as you get the bill. For millionaire credit building, this does have an impact on your credit score. Additionally, it keeps your average daily balance low and saves you money on interest when determining interest and insurance rates.
DO keep your account balances less than 40-60% of the limit. Potential creditors like to see that you use your credit appropriately, but not excessively. The old adage “The best way to get approved for credit is to not need the money” is true.
DO pay your biggest bills first. The larger the missed payment, the more it hurts your credit score. Simiarly, if you are forced to juggle bills, choose to skip the payments for the creditors who don’t report to the credit bureaus like utility companies and pay the ones who will report to the bureaus.
DO pay your mortgage or home loan every month. Lenders frown on late payments on your old home loan when you are applying for new loans.
DO maintain a variety of types of loans. A previous mortgage or auto loan will increase your chances of getting the next mortgage or auto loan.
DON’T cancel your credit cards. Even unused cards help your credit score. It is not until you have a long credit history with a large number of accounts that lenders start to be concerned that you are possibly overextending yourself. If you have trouble not using your cards wisely, freeze them in a block of ice, even cut up the cards. But don’t cancel the account!
DON’T sign up for more cards or get too many rate requests over an extended period of time . Strategically plan and concentrate your efforts when applying for additional credit or loans.
DON’T pay old unpaid bills. This will draw attention to the old accounts. Showing recent activity can keep the information on your report for an extended period of time. Sometimes it is better to leave sleeping dogs lie.
For more information on home buying or selling, give us a call!
Pam Parton & Joanna Woolley
760-580-1615 or 760-580-1630
Brian Olenik of
Corinthian Title
contributed to this
article
Your Home's Investment
If you are in the process of buying a home ask your Real Estate Agent when submitting your offer to ask for:
1) THE CLTA/ALTA HOMEOWNER’S POLICY: There are 3 forms of title policies offered in California. The CLTA Policy (Standard Policy), ALTA-R (ALTA Residential) and the ALTA Homeowner’s Policy.The distinction is that the CLTA Policy only offers very limited protection against defects such as liens and encumbrances (these items are not part of the public record). The ALTA-R Policy provides greater coverage against several (but not all) off-record matters. Numerous title companies will only issue the CLTA Policy (Standard Policy) on REO and Short Sale transactions. This coverage is not enough to protect the most comprehensive policy available to you. Remember to request the ALTA Homeowner’s Policy for your purchases on all 1-4 unit residential properties.
2) MAKE SURE THAT THE POLICY IS ISSUED “WITHOUT WESTERN REGIONAL EXCEPTIONS”. Beware of these exceptions to coverage. They include some of the most common issues that later become title claims. “Western Regional Exceptions” exclude coverage in the policy from matters such as easements not shown in the public record, certain tax liens which should be cleared before closing, boundary line discrepancies and other matters. Some title companies will issue the CLTA/ALTA Homeowner’s Policy, but then include these as exceptions later in the report. A good idea is to write in the contract “Without Western Regional Exceptions”(when the property is located in San Diego, Orange, Riverside and San Bernadino Counties).
For More Information on San Diego Real Estate Call Pam and Joanna, we are here to help and we answer our phones.
PAM PARTON 760-580-1615 JOANNA WOOLLEY 760-580-1630
Content courtesy of Brian Olenik, Corintian title.
Palomar Mountain is a mountain range in Northern San Diego County, California only a few miles from Valley Center. Its claim to fame is being the home of the famous Palomar Observatory and the Giant Hale Telescope. It is also the location of Palomar Mountain State Park.
Palomar Mountain
There are several great campgrounds for campers, as well as a campground for the local school children. On average 70,000 visitors take in the sites of this beautiful mountain. The highest point in the Palomar Mountain range is one of the highest peaks in San Diego County, at 6,140 feet, although it is dwarfed by the higher 11,500 feet San Bernardino Mountains, which are north in San Bernardino County and Riverside County. Also Mount Whitney 14,500 feet which lies further north.
Valley Center Living offers the benefits to many homeowners some of the most amazing vistas from their homes of this everchanging mountain range -
Home Buyers do You Know About the New FHA Rules
The Federal Housing Administration
(FHA) have recently announced some new rules for FHA borrowers. If you are considering buying a home you do need to be aware of these new rules as they will effect you, this might make qualifying for a home loan a litttle more challenging.
- The minimum credit score requirement for new borrowers has been raised to a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10 percent of the purchase price of the home. FHA expects this to take effect in the early summer months.
- Allowable seller concessions will be reduced. The agency is lowering the maximum permissible level to 3 percent from its current 6 percent limit. FHA expects this also to take effect in the early summer months.
- The up-front mortgage insurance premium will rise to 2.25 percent from its current 1.75 percent. HUD is expected to release a Mortgage letter towards the end of January making the premium increase effective this spring.
If you are thinking of buying a home it might be wise to move forward and purchase as soon as possible.
We are available to help you through every step of your home purchase. Please give us a call to schedule an appointment.
Pam Parton 760-580-1615 Joanna Woolley 760-580-1630
- An FHA 203 (k) Can Help You Purchase and Repair a Home with One Loan.
FHA 203 (k) Home Buyers Repair Loan
If you are a home buyer looking to buy a home that needs some repairs or updating, an FHA 203(k) rehabilitation loan can help. It is a mortgage that provides the purchase price plus funds for renovation by financing the “as improved” value of the home. This can make it possible to make repairs or improvements with just one loan and one closing. Renovations are completed after closing of the loan using a portion of the proceeds to cover improvement costs.Funds are held in a loan reserve to pay for the improvements in a managed account. With so many neglected or damaged homes on the market at this time this can be an excellent route to take, allowing you to buy the home you have always wanted.
- Applies to owner occupied primary residences, from 1-4 units
- Requires as little down as 3.5% to qualify
- Includes most repairs that add value to the property
- Covers materials, labor and expenses such as permits and fees
- Repairs need to be less than $35,000
- Foundation and Structural Repairs cannot be included
- No monthly mortagage payments can be included in the total amount
So if you or someone you know is thinking of purchasing a home call us today so we can give you more information on this great loan.
Pam Parton 760-580-1615 Joanna Woolley 760-580-1630
Check out our Latest Listing -
Sunset Views
2192 Rock View Glen
Stunning Hilltop Location with gorgeous views of Mountains and Canyons. Enjoy the open light bright floorplan with abundant natural light. French doors open to private entertainers patio. New bamboo flooring throughout ground level. Large open kitchen with breakfast nook, brand new appliances. Comfortable master suite with fireplace and huge custom closet. Optional 4th bedroom with full bath on ground floor. 3 car garage with ample storage and work bench.
Breathtaking views from an entertainers patio. The best part is IT’S A REGULAR SALE!
- 2459 SQ FT
- 3 BEDROOMS/3 BATHROOMS
- BUILT IN 1994
- 0.12 ACRES
- VIEWS OF MOUNTAINS AND CANYONS
- GATED COMMUNITY WITH GORGEOUS POOL AND SPA
- TENNIS COURTS
- WORK OUT ROOM
-
PRICED AT $485,000
Call Pam and Joanna for more information or to make an appointment to view this beautiful home.
Pam Parton 760-580-1615 Joanna Woolley 760-580-1630
CALIFORNIA HOME PRICES SHOW YEAR-TO YEAR GAIN FOR FIRST TIME IN TWO YEARS!!
This is great news!
INCREASE IN CALIFORNIA HOME SALES
The median price of a home in California experienced its first year-to year gain in over two years during the month of November 2009, as the California housing market continued recent trends in terms of prices, supply and sales.
The monthly median home price crossed the $300,000 threshold in November with a median of $304,520, up 2.4 percent from the October median price of $297,500 and up 5.8 percent from $287,880 a year earlier.The situation has improved greatly from a year ago during the worst of the financial crisis, when the median price had registered 41.3 percent year-to-year decline.
After a 59 percent peak-to-trough decline, the California median home price has increased 24.1 percent from a trough of $245,170 that occurred in February 2009. The increase in price has been sustained by a combination of lean supply and high demand, the latter triggered by historically high affordability. By comparison, the National Assoc of Realtors national median price for existing single family homes, which experienced a 29 percent peak-to-trough decline, has increased by 4.7 percent from its trough of $164,00 in January to $171,900 in November 2009.
Nine consecutive month-to month increases in the California median price have been the result of the lean inventory conditions throughout the year. The MLS-based unsold inventory index for California has averaged 4.8 months since the start of the year, well below the 7 month long run average. By comparison, the national unsold inventory index for single family homes has averaged 8.4 months over the year. Inventory levels in both California and the US have trended down for most of the year. As for sales, California returned to pre-peak levels of sales in late 2008 and sustained them through 2009.
With Sales of 536,720 homes in November, the market was 4.6 percent lower than the October sales figures of 562,400, but 4.7 percent above the November 2008 figure of 512,840. Sales throughout the year have averaged 545,600, compared with the pre-peak monthly average over the 2000-2002 period of 537,300 homes. Over the 2000-2002 period, US sales of existing homes averaged 4.8 million homes, compared with the low-to mid-4 million range of sales that the national market experienced from late 2007 until late this year when sales finally exceed the 5 million threshold.
Call Pam and Joanna if you are thinking of buying or selling a home.
Voted “Best in Client Satisfaction Real Estate Agents for 2009 and 2010 – fewer than 7 percent of all licensed real estate agents in San Diego recieve this award.
Pam Parton 760-580-1615 Joanna Woolley 760-580-1630
Content Courtesy of: Robert A. Kleinhenz , Ph.D., Deputy Chief Economist
Understanding your FICO score and how it affects your ability to obtain credit.
FICO scores
REMOVING SOME OF THE MYSTERY ABOUT CREDIT SCORING
Fair, Isaac Co., the major provider of credit scoring systems to lenders, revealed how it determines credit scores, also know as FICO scores. Many lenders use these scores to predict how likely a borrower is to repay a loan.
FIVE MAIN FACTORS INFLUENCE YOUR FICO SCORE:
1) PAYMENT HISTORY
Payment history accounts for about 35 percent of your score. Paying your bills on time is the best way for you to receive a high FICO score.
2) YOUR CURRENT DEBT
About 30% of your score is determined by how much you currently owe. If you owe a lot of money in relatio lto your available credit limits, you may appear over extended. The key is to keep your balances low on unsecured debt such as credit cards. Even closing unused accounts may not improve your score.
3) HOW LONG YOU’VE HAD CREDIT
The longer you’ve had credit and handled it responsibly, the better your FICO score will be. The length of your credit history accounts for 15% of your score
4) APPLICATIONS FOR NEW CREDIT
Applying for several credit accounts in a short period of time could indicated that you may soon be over extended and may lower your score. This is about 10% of your score.
5) MIX YOUR CREDIT
The final 10% of your score is determined by the kinds of credit accounts you have, such as credit cards, retail accounts, installment loans, finance company loans and mortgage loans, and how many of each.
Ther are other elements, mostly subcategories of the items listed above, that go into your score, including your occupations, time at present job, time at your current address, home ownership and much more. For more information or to obtain a copy of your FICO score, visit www.fairisaac.com
Following these guidelines will help you obtain better financing rates when you are ready to purchase your next home.
Give us a call with any real estate questions you may have, we’re here to help and we answer our phones!
Pam Parton and Joanna Woolley
760-580-1615 or 7605801630
Brian Olenik of
Corinthian Title
contributed to this article
