No, that is NOT an April Fool's joke, but you can bet it really looks like one.
The FHA announced that it is raising Mortgage Insurance Premiums (MIP) for FHA mortgages. These increases will only impact new FHA loans and DO NOT impact existing FHA borrowers. The MIP changes can be summarized as follows:
* Upfront MIP increase by 0.75 points to 1.75%. The UFMIP as is the case now can be financed into the mortgage. This change is to be effective from April 1, 2012.
* Effective April 1, 2012 FHA is also increasing its MIP by 10 bps as required by the Temporary Payroll Tax Cut Continuation Act of 2011.
The FHA estimates these changes will add over $1 billion to their fund based on their volume projections through September 30, 2013.
We will have additional details as soon as possible.
From Jesse Lehn, MIG
Remember you can always reach me at george.margrave@migonline.com or http://www.mignashville.com/ or by phone at 615-777-HOME (4663).
Wednesday, February 29, 2012
Thursday, February 23, 2012
9 Popular Tax Breaks You Can No Longer Count on in 2012
From what I understand the tax deductibility of Mortgage insurance expired Jan 1-2012. So you can probably write it off on the return you are about to file, but not the next one.
I believe the same thing is happening with our sales tax deduction. Tennessee, being one of the few states without an income tax had been allowed to write of the sales tax in lieu of state income tax. But that write off is also going away. Write your congress people. And take a look at this article....
9 Popular Tax Breaks You Can No Longer Count on in 2012
Lawmakers may have extended the payroll tax holiday for two months, but they let a number of tax breaks that might be dear to you expire.
You'll face a higher tax bill next spring if Congress doesn't act to revive a series of tax breaks that expired Dec. 31, 2011. Among the breaks that Congress didn't extend in all the sturm-und-drang over the payroll tax holiday are:
Alternative minimum tax patch...The AMT is a parallel tax system created more than 40 years ago to prevent excessive use of tax breaks by the very wealthy, ensuring they pay at least some tax. Taxpayers whose income exceeds the AMT exemption - in 2011, $48,450 for individuals and $74,450 for married couples filing jointly - must calculate both regular tax and AMT liability and pay the larger of the two amounts. But exemption levels have, at least tentatively, dropped to $33,750 for individuals and $45,000 for married couples filing jointly in 2012, which will expose 31 million taxpayers to the higher AMT this year, according to Tax Policy Center estimates.
Higher mass transportation benefit...This one's of particular interest to straphangers, van-riders and other users of public transit. A 2009 federal stimulus provision raised the maximum an employee could receive for transit, tax-free, from $120 to $230. That matched the tax-free limit for parking. With the expiration of this break, the maximum for 2012 dropped to $125. Employees who've asked to have an amount higher than that withheld from their paycheck to cover their total commuting costs will see their net pay come down, as the difference is now taxed.
Deduction for direct IRA payouts to charity...Retirees who are 70½ or older could direct up to $100,000 of their IRA distributions directly to charity and exclude the donated amounts from taxable income. Not anymore in 2012, unless Congress reinstates this deduction.
Write-offs for state sales taxes...This particularly significant expired break allowed you to deduct either state income tax or state sales tax from your federal taxable income.
Teacher's supplies deduction...Teachers, even if they didn't itemize, were able to take an additional deduction of up to $250 for classroom supplies they paid for out of their own pockets.
Tuition and fees deduction...Taxpayers (up to certain income limits) who can't claim the more advantageous American Opportunity or Lifetime Learning credits can still reduce taxable income by up to $4,000 for tuition and other qualifying educational expenses -- if, of course, Congress reinstates this break.
Mortgage insurance premium deduction...Homeowners who don't exceed certain income limits had been able to deduct premiums they pay on mortgage insurance policies issued after 2006 on their primary residence.
Personal tax credits applied against the alternative minimum tax...Credits such as the tuition and dependent-care credits were allowed to offset your AMT liability.
Research and Development credit...Like the AMT patch and direct IRA payouts, this credit, which allowed high-tech companies and others to subsidize research in areas that might go unexplored, has broad support. But it still falls to Congress to reauthorize it periodically.
We think Congress will manage to revive these breaks -- eventually -- with the exception of the transit subsidy, whose chances are no better than 50-50 . But you may spend much, if not all, of 2012 in a state of uncertainty. The political atmosphere in Washington is so toxic that it is doubtful the parties will reach agreement before the end of 2012, when Congress will have to take up the question of extending the Bush tax cuts.
If lawmakers wait too long, in 2013, we may have a repeat of the 2006 and 2010 filing seasons, when many taxpayers had to wait for the IRS to reprogram its computers before they could file their tax returns. In both cases, the start of the filing season was delayed for many until early to mid February.
Reprinted with permission. All Contents ©2012 The Kiplinger Washington Editors. http://www.kiplinger.com/ .
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com
I believe the same thing is happening with our sales tax deduction. Tennessee, being one of the few states without an income tax had been allowed to write of the sales tax in lieu of state income tax. But that write off is also going away. Write your congress people. And take a look at this article....
9 Popular Tax Breaks You Can No Longer Count on in 2012
Lawmakers may have extended the payroll tax holiday for two months, but they let a number of tax breaks that might be dear to you expire.
By David Muhlbaum, Kiplinger.com
You'll face a higher tax bill next spring if Congress doesn't act to revive a series of tax breaks that expired Dec. 31, 2011. Among the breaks that Congress didn't extend in all the sturm-und-drang over the payroll tax holiday are:
Alternative minimum tax patch...The AMT is a parallel tax system created more than 40 years ago to prevent excessive use of tax breaks by the very wealthy, ensuring they pay at least some tax. Taxpayers whose income exceeds the AMT exemption - in 2011, $48,450 for individuals and $74,450 for married couples filing jointly - must calculate both regular tax and AMT liability and pay the larger of the two amounts. But exemption levels have, at least tentatively, dropped to $33,750 for individuals and $45,000 for married couples filing jointly in 2012, which will expose 31 million taxpayers to the higher AMT this year, according to Tax Policy Center estimates.
Higher mass transportation benefit...This one's of particular interest to straphangers, van-riders and other users of public transit. A 2009 federal stimulus provision raised the maximum an employee could receive for transit, tax-free, from $120 to $230. That matched the tax-free limit for parking. With the expiration of this break, the maximum for 2012 dropped to $125. Employees who've asked to have an amount higher than that withheld from their paycheck to cover their total commuting costs will see their net pay come down, as the difference is now taxed.
Deduction for direct IRA payouts to charity...Retirees who are 70½ or older could direct up to $100,000 of their IRA distributions directly to charity and exclude the donated amounts from taxable income. Not anymore in 2012, unless Congress reinstates this deduction.
Write-offs for state sales taxes...This particularly significant expired break allowed you to deduct either state income tax or state sales tax from your federal taxable income.
Teacher's supplies deduction...Teachers, even if they didn't itemize, were able to take an additional deduction of up to $250 for classroom supplies they paid for out of their own pockets.
Tuition and fees deduction...Taxpayers (up to certain income limits) who can't claim the more advantageous American Opportunity or Lifetime Learning credits can still reduce taxable income by up to $4,000 for tuition and other qualifying educational expenses -- if, of course, Congress reinstates this break.
Mortgage insurance premium deduction...Homeowners who don't exceed certain income limits had been able to deduct premiums they pay on mortgage insurance policies issued after 2006 on their primary residence.
Personal tax credits applied against the alternative minimum tax...Credits such as the tuition and dependent-care credits were allowed to offset your AMT liability.
Research and Development credit...Like the AMT patch and direct IRA payouts, this credit, which allowed high-tech companies and others to subsidize research in areas that might go unexplored, has broad support. But it still falls to Congress to reauthorize it periodically.
We think Congress will manage to revive these breaks -- eventually -- with the exception of the transit subsidy, whose chances are no better than 50-50 . But you may spend much, if not all, of 2012 in a state of uncertainty. The political atmosphere in Washington is so toxic that it is doubtful the parties will reach agreement before the end of 2012, when Congress will have to take up the question of extending the Bush tax cuts.
If lawmakers wait too long, in 2013, we may have a repeat of the 2006 and 2010 filing seasons, when many taxpayers had to wait for the IRS to reprogram its computers before they could file their tax returns. In both cases, the start of the filing season was delayed for many until early to mid February.
Reprinted with permission. All Contents ©2012 The Kiplinger Washington Editors. http://www.kiplinger.com/ .
Mortgage Market Guide
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com
Wednesday, February 15, 2012
Reverse Mortgages
We haven’t talked about reverse mortgages lately. In the right situation they are wonderful. All of a sudden our client has no house payment (except taxes and insurance). In some cases they may even get a payment to them in the form of a lump sum of cash or other bills paid off. There is no credit check so credit is not a factor. The equity in the home and the borrower’s age are the main factors. If you have a friend that is interested send me the address and birth date and we can give you a rough idea.
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com
Wednesday, February 8, 2012
Are YOU a First Time Home Buyer? We can HELP!
I want to mention our expertise with First Time Home Buyers. My team accounted for the most THDA loans in the state for 2010. This fiscal year which is almost half done finds us in the lead again. I just want to point out that these loans are not always the easiest, but I think we are serving our community by working on them so diligently.
You may not realize it but in most cases we can structure it so that these buyers do not have to have money to make the purchase. (this is in spite of what you read in the media that 20% is required)The interest rates are great and as a result of this, our borrower often owns a home for less than the rent they were paying.
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .
You may not realize it but in most cases we can structure it so that these buyers do not have to have money to make the purchase. (this is in spite of what you read in the media that 20% is required)The interest rates are great and as a result of this, our borrower often owns a home for less than the rent they were paying.
Wednesday, February 1, 2012
Housing Trends, First Time Homebuyers
Happy New Year, friends! We start 2012 with a look at first time home buyers. Where would they like to live? The results are in and it's no surprise that 78% said "near shops and services." The top 7 are listed here:
1. Shops and services (78%)
2. Their job (75%)
3. In a very good school district (66%)
4. Parks and other open spaces (61%)
5. Family and/or relatives (61%)
6. Restaurants, nightlife and other activities (51%)
7. Easy access to public transportation (45%)
Take a look at this infograph for more interesting information. Click here for an enlarged version.
~~From Tennessee Title
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .
1. Shops and services (78%)
2. Their job (75%)
3. In a very good school district (66%)
4. Parks and other open spaces (61%)
5. Family and/or relatives (61%)
6. Restaurants, nightlife and other activities (51%)
7. Easy access to public transportation (45%)
Take a look at this infograph for more interesting information. Click here for an enlarged version.
~~From Tennessee Title
You can reach me at 615-777-4663 (HOME) or email me at George.Margrave@migonline.com .
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