Finance & Mortgage

Found 19 blog entries about Finance & Mortgage.

3.8tax_400As the year winds down, we are getting more and more inquiries about the Mortgage Forgiveness Debt Relief Act of 2007 and whether or not it will be extended past its original expiration date of December 31, 2012. This is important as people who are selling their home through a short sale may be faced with a tax liability if they don’t close by the aforementioned date.

Here is the way the IRS explains the tax liability:

“If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the

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3.8tax_4001) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax. 

2) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property. 

3) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income. 

4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is…
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credit_repair_resultsCredit Report Scoring

What is credit report scoring?

Credit report scores are often used by lenders as a predictor of how likely you are to repay your loans. A credit score is generated by a mathematical formula utilizing the data from your TransUnion, Equifax or Experian credit reports. Lenders have been using credit report scoring as part of lending decisions for more than 20 years.

What factors influence credit report scoring?

Various factors affect credit scores, including the following:
  • Payment history
  • Number and types of credit accounts
  • Length of credit history
  • Severity and frequency of negative credit information, such as bankruptcies, charge-offs and collections
  • The percentage
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NEW YORK (CNNMoney) -- Home prices hit a bottom and are finally bouncing back, according to an industry report released Tuesday.

Nationwide, home values rose 0.2% year-over-year to a median $149,300 during the second quarter, the first annual increase since 2007, real estate listing site Zillow reported. Prices were up 2.1% from the first quarter.

 

Even though June marked the fourth consecutive month of home value increases, overall home prices are still down almost 24% since April 2007, when Zillow began to track home values.

"[I]t seems clear that the country has hit a bottom in home values," said Zillow's chief economist Stan Humphries. "The housing recovery is holding together despite lower-than-expected job growth, indicating that it has

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Stocks of homebuilding companies have taken off - but they still have room to run.

 

housing_400

FORTUNE -- It has happened repeatedly: The housing market shows hints of revving up only to sputter and stall. In fact, by Deutsche Bank's count, there have been seven false recoveries during the six-year national housing downturn. Now there are signs that a true residential property recovery is under way. Exhibit A: Stocks of homebuilding companies have soared, with many doubling over the past nine months. The good news for investors, according to analysts who track fundamental data, is that even after their gains, these stocks offer rich potential. 

The reason is straightforward. There's a looming shortage of new homes in the U.S., and construction will have

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low-interest-rates_400In Freddie Mac's results of its Primary Mortgage Market Survey®, the average fixed mortgage rate continues to find new all-time record lows amid easing bond yields following June's lackluster employment report. Both the average 30-year and 15-year fixed-rate mortgage hit new lows. The average 30-year fixed has been below 4.00 percent for 16 weeks. The average 15-year fixed has been below 3.00 percent for 7 weeks.
  • 30-year fixed-rate mortgage (FRM) averaged 3.56 percent with an average 0.7 point for the week ending July 12, 2012, down from last week when it averaged 3.62 percent. Last year at this time, the 30-year FRM averaged 4.51 percent.  
  • 15-year FRM this week averaged 2.86 percent with an average 0.7 point, down from last week when it
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homes_increase_value_400Rebounding home prices are lowering the number of home owners who are considered “underwater” on their mortgage, according to a new report by CoreLogic.  More than 700,000 home owners are no longer considered “underwater,” owing more on their mortgage than their home is currently worth.  

At the end of March, 23.7 percent — or 11.4 million — of home owners with mortgages were considered underwater on their mortgage, according to CoreLogic’s latest report. Three months prior, that percentage was 25.2 percent, or 12.1 million home owners. 

Mark Fleming, CoreLogic’s chief economist, attributes the decrease to recent gains in home prices, a drop in for-sale inventory, and fewer distressed sales, which are all helping more home owners see the values

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real_estate_in_seattle_improving_400A spring growth spurt continues to bloom in the housing market.

Existing-home sales rose 3.4 percent from March to April with tight supplies in markets like Miami helping to seed the rejuvenation, according to National Association of Realtors data released today.

Year over year, home sales were 10 percent higher in April while median home prices touched $177,400, a 10.1 percent spike from April 2011, the NAR said.

Of course, huge chunks of the housing market will appear sunnier when compared to the soggy early months of 2011 when, in cities like Miami, “things were pretty rotten,” said Rich Green, an agent with Coldwell Banker Residential Real Estate in Coral Gables, Fla.

“But, yeah, April was a pretty strong month here,” Green said. In Miami,

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