Category Archives: Home Buyers

Homeowner Tax Tips

homeowner tax tipsEven if you’re having a professional help you with your income tax return, you need to provide them with information on the money you spent that might be deductible. Look at the following list of homeowner tax tips to see if any of these things need a little more investigation to determine if they apply to your situation.

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Should You Downsize Your Home?

downsizingWith roughly 12.5% of the population over 65 years of age, it is understandable that some people are thinking of downsizing because they may not need the amount of space they did in the past. There is something to be said for the freedom acquired by divesting yourself of things that have been accumulated over the years but are no longer needed. Should you downsize your home? It does have its benefits.

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Common Real Estate Terms

Real estate terms in dictionaryCommon real estate terms like CC&Rs, a cloud on title, or PITI are frequently used in the real estate industry but often unknown outside of it. The California Land Title Association has put together a list defining many of these terms.

If you’d like to know the meaning behind those strange terms and acronyms, read on.

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Remodeling Projects Are on the Rise

Remodeling projects are on the rise! Last year the home improvement market grew by over five percent and one in five new homeowners undertook a home improvement project. This year the Leading Indicator of Remodeling Activity (LIRA) expects home improvement spending to continue to increase by as much as 9.9 percent over last year. Metrostudy’s Residential Remodeling Index (RRI) also predicts growth in home improvement spending. This is good news for job seekers and the economy in general.

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Three Reasons to Choose a 15 Year Loan

3 Reasons to Get a 15 Year LoanFreddie Mac chief economist, Frank Nothaft, says that affordability, stability and flexibility are the three reasons homebuyers overwhelmingly choose a 30 year term.  However, for those who can afford a higher payment, there are three additional reasons to choose a 15 year term: save interest, build equity and retire the debt sooner.

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Another Down Payment Source

IRA and cash

Most taxpayers know that they will pay a 10% penalty if they withdraw funds from their IRA before they turn 59.5 years old.  There is an exception for first-time home buyers that allows a penalty-free withdrawal of up to $10,000 per person if they haven’t owned a home in the previous two years.

This would allow a married couple who each have an IRA to withdraw a lifetime maximum of $10,000 each, penalty-free for a home purchase.

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The Question Every Cash Buyer Should Answer

cash buyer warning sign

Paying cash for a home seems like a huge advantage to qualifying for a mortgage and an appraisal. However, for the fortunate few who don’t need a mortgage and are cash buyers, there is a question they should answer before they make that decision: Do you think at any point in the future, you might put a mortgage on this property?

It’s important because paying cash for a home could affect the ability to deduct the interest if the homeowner should place a mortgage on the home at a later date.

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Should You Opt for a Fixed-Rate Mortgage?

Type of Mortgage Acquired

94% of purchasers last year opted for a fixed-rate mortgage at some of the lowest rates in home buying history.  Yet, some of them will pay more in interest than necessary based on the time they’ll own the home.

If a person only plans to be in the home a few years, the adjustable-rate can offer significant savings.

Not only is the interest rate on the adjustable-rate lower than the fixed in the initial period, amortization on a lower interest rate amortizes faster than a higher interest rate.

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Housing Statistics Reports for San Diego County and North San Diego County April 2014

HomeDex logo housing statistics
March housing statistics were a bit of a mixed bag in San Diego County. Hopefully this indicates that we are moving toward a more balanced market.

The housing statistics report for San Diego County overall showed an increase in the median price for single-family detached homes from $470,000 in February 2014 to $492,000 in March 2014 and a year-over increase of 13.1 percent from March 2013.

In North San Diego County, the median price for detached homes slipped slightly dropping from $564,500 in February 2014 to $556,000 in March 2014, but still increasing almost 6 percent compared to March 2013. This annual appreciation of approximately 6 percent is much more sustainable than the many months of 20 to 25 percent year-over median price increases we had been experiencing.

The median price of single-family attached homes increased both countywide and in the North County area in March 2014 showing a year-over gain of 5.44 percent countywide and 1.83 percent in North County.

To read the full housing statistics reports, please click on the links below.

FULL COUNTY REPORT    NORTH COUNTY REPORT

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Is the Window Closing?

window closingWith interest rates lower than they’ve been in over 40 years, it may be difficult to think of a “window of opportunity” closing.  However, it isn’t difficult to understand that it may very probably cost more to live in a home in the near future due to rising interest rates and prices.

Zillow recently reported results from a nationwide study that home values are expected to appreciate by 4.5% through the end of the year.  Coupled with Freddie Mac’s projection that rates are going up, the cost of housing for buyers by the end of the year will be higher than it is now.

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