Find out the 10 biggest mistakes for home buyers and how to avoid them!
"Having run an international company, I could appreciate the marketing that Tom did for our house. He priced it correctly at $2,250,000 and implimented a marketing plan which produced two full price offers in a few weeks. We were impressed with this extremely thorough transaction."
~Satisfied Seller
"Please let me take this opportunity to thank you for moving my property in Short Hills. I was told that the McDonough name was magic when it came to selling or buying property - now I'm convinced."
~Satisfied Seller
Although the tax credit is now over, it’s still a great time to buy with rates so low!
According to MSN.com “Every 1 percentage-point increase in mortgage rates reduces a buyer’s purchasing power by 10%. I.E. taking out a 30-year mortgage for $300,000 at a rate of 5% will cost you about $1,600 a month, not including tax…es & insurance. But the same monthly payment at a rate of 6% will get you a loan of only $270,000″
Come check out my new 11 room, 3 bedroom listing at 28 Bellevue Avenue in Summit, NJ on this Sunday, 5/2, from 1-4pm. You have to see this updated 1920’s colonial!
This is a commonly asked question. Each time that you refinance, or put a new mortgage on the property, it is considered a separate event. If there is a new lender, or simply a new loan, that new loan must be insured. In addition, a new title search must be obtained to make sure that there have been no intervening liens, or title defects since the time that you purchased or last refinanced the Property.
For a refinance transaction, a new lender’s title insurance policy must be issued, not a new owner’s policy. As such, the cost of the title insurance should be less then when you purchased. The cost of title insurance is regulated by law, and in the case of a refinance will be based on the amount of the new loan.
If you have any questions about this process, please give me a call at 973-898-7300 x126. I would be happy discuss it with you.
You may also find more information on Refinancing on my web site, www.martyeagan.com.
Attorney review begins once the Contract is signed by both parties and the fully executed contract is distributed to both parties. It typically lasts three business days, not including weekends. While in Attorney review, the attorneys representing the respective buyer and seller will ensure that all terms are clearly understood and acceptable to both parties. Once all are in agreement, both attorneys’ will approve the contract. It is then a legally binding contract.
It is important to make sure that the real estate agent sends a copy of the executed contract to both attorneys. The attorney review period runs, even if your attorney has not received the contract.
If you have any questions about attorney review, or any other part of the process, please give me a call.
Marty Eagan
Attorney at Law
Morristown, NJ
973-898-7300 x126
Rates as of 1/18/2010, APR Based on $250,000
Loan Type Rate APR
30 Year Fixed 5.00% 5.08%
15 Year Fixed 4.50% 4.63%
5/1 ARM 4.00% 4.07%
30 Year Fixed Jumbo 5.25% 5.33%
FHA 5.25% 5.33%
Contact me today to take advantage of these low rates and my years of expertise!
Fred Concepcion, Loan Officer
Home Capital Network
fconcepcion@homecapitalnetwork.com
Property taxes are high and sometimes excessive. Recently I visited the Summit tax assessor’s office to question my own. They asked me to review the property record card for accuracy. This showed square footage, number of bedrooms, baths etc.
The total assessment is divided by the equalization ratio which is what the town considers to be the fair market value of a home. I told the assessor that I could not sell my house for that price.
They gathered some recent comparable sales and determined that my taxes were indeed too high. The land assessment is based on a value per acre and will not be adjusted. However, they were willing to reduce the improved value which reduced my taxes by $2,000!
President Barack Obama has approved the first-time homebuyer tax credit extension.
Eligibility:-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
-All U.S. citizens who file taxes are eligible to participate in the program.
Income Limits:
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
-For married couples filing a joint return, the combined income limit is $225,000.
-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.
Effective Dates:-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
Types of Homes that Qualify:
-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.
Tax Credit is Refundable
-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
For example:
-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).
-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.
Payback Provisions
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
The www.federalhousingtaxcredit.com site is being updated. Check the site regularly for more detailed information on the new tax credit.
For more information, visit www.nahb.org.
SOURCE: RISMedia, November 6, 2009
Are you sick of paying the highest taxes in the United States? Start with a property tax appeal. Understand the components of your taxes and how your assessments are determined. Find out if you are elegable and how the process works.
Guest speaker will be Joe Sadano of Professional Appraisers. Please join me tomorrow night, November 11th, at the Green Village Firehouse at 529 Green Village Road in Chatham Township from 7-9PM. If you are unable to attend, feel free to contact me for any answers that I can help with.
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