Many times we have been forced to use a notary signing agent or a closing agent…they are not the same. A Notary Signing Agent is a ministerial officer that acts as a impartial, third party witness to document signings and may not advise the borrower about the loan terms or answer questions about the loan. The Notary Signing Agent is responsible for positively identifying the signer, making a commonsense judgment that the borrower is aware of what is being signed and signing willingly and following all necessary requirements for notarizing the borrower’s signature. The Notary Signing Agent may not answer questions about the loan terms or advise the signer regarding the loan.
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The Federal Reserve may again exercise it’s power to drive down mortgage rates in order to stimulate the economy, but any savings for homebuyers may be at least partitally offset by a new law that raises Fannie Mae and Freddit Mac’s guarantee fees and diverts that money to the Treasury.
Homeownership Plummets: The nation’s homeownership rate fell to 65.9 percent in the second quarter, its lowest level since early l998, according to the Census Bureau. The decline, which shows as many as 1 Million more renters than a year ago, spared no region.
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FANNIE MAE”S HOMEPATH MORTGAGE IS A SPECIAL PRODUCT OFFERED TO FINANCE THE PURCHASE OF FANNIE MAE REO PROPERTIES
Benefits of HomePath Mortgage:
- Low down payment and flexible mortgage terms
- Down payment can be funded as a gift, grant, or a loan from a nonprofit organization, state or local government, or employer.
- No property appraisal required! All properties are sold “As Is”
- No mortgage insurance required
- Available for primary residences, second homes and investment properties.
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Everyone breathed a sigh of relief when the tax cuts were extended at the end of last year for another two years. Although it is good for real estate investors that the maximum federal capital gains rate will remain at 15% for the next two years, savvy investors know that they really pay much more tax than that when they sell their properties. Even if your gain is not substantial due to a downturn in the market, it’s important to know and calculate the different ways you may be taxed before deciding whether to cash out or defer your tax in a 1031 exchange.
ADDITIONAL TAX LIABILITIES
When you sell improved investment property, you must pay tax on a recapture of depreciation. Even if you have absolutely no gain due to appreciation, you will owe tax at the rate of 25% of the amount that you depreciated, or could have depreciated, during the time you owned the property.
In many states you must also pay state tax on the gain. Depending on the state you reside in, the state tax can add almost and additional 10% on to tax rate. Be sure to check with your tax accountant before selling your property.
Associations across the country are gearing up for the 2011 Realtor Nationwide Open House..mark your calander for June 4-5.
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With minority households driving U.S. population growth, the key to maintaining the home ownership rate (66.9 percent, according to the latest U.S. Census Bureau data) will be boosting the rate among African Americans, Hispanics, and other non-white households. Fannie Mae’s latest Own-Rent Analysis shows the U.S. population is projected to grow by 1320 million people by 2050, at which time white households will comprise about 46 percent of the population, down from 65 percent today. Yet the home ownership rate among minorities is significantly lower than that of whites, so the population shift in home ownership rates as well if the U.S. ownership rate is to remain steady.
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Tax Law Maintains Real Estate Status Quo…
The massive tax-extension law that President Obama signed at the end of 2010 keeps tax brackets and the capital gains rate at existing levels for two more years and maintains other key real estate provisions such as the 15-year cost recovery period for leasehold improvements, 25 percent depreciation recapture rate, and the deductibility of expenses related to brownfields remediation. The law also extends some energy efficiency tax benefits for up to two years and holds onto the deductibility of mortgage insurance premiums. It’s a likelihood with the upward-spiraling deficit that interest rates will increase in the future!
Maybe you haven’t thought about which type of loan you will be getting..but here is something to think about. Right now the interest rates are fabulous (in the 4’s), which you and I know that will come to and end. Think about when interest rates go to 8 and above and you plan on moving. Your loan (FHA) can be assumed by a qualified buyer at the 4% interest rate. You have just made your home more saleable to the next buyer…it’s something to think about if you plan on moving up or just selling within 5 plus years.
