Buy now (in March) and save $264/ year in payments!

Want to save more money by buying now rather than after April 1, 2012?

FHA mortgage insurance is increasing to a 1.75% up front mortgage insurance premium (currently 1%) and 1.25% for the monthly mortgage insurance premium (currently 1.15%) on April 1st, 2012.

I calculated the increase in payment on a $170,000 sales price home and it would be $22/month ($264/year, $3168 over 30 years).

Buy now (in March) and protect yourself from this increase.  :)

How long do I keep my tax forms, home and mortgage records?

How long do I keep my tax records? 

Since we are into tax filing season, and as a homeowner who has accumulated paperwork from purchasing my home and refinancing several times, I wanted to do some research into how long I needed to keep my records in case I had an IRS audit. 

Unless it suspects fraud, the IRS generally cannot launch an audit more than three years after an individual tax return (six years for those who own their own business). 

Nonetheless, it is best to keep all copies of your annual returns forever.  Tax returns will come in handy if you get into an argument over your income with the IRS or with the Social Security Administration (SSA with filing for benefits at some future time).

How long do I keep my home documents?

Keep the final settlement statements you received when you first purchased your home.  Keep these until you sell the home.  Because home improvement costs can be added to the "adjusted cost basis" of your original purchase price, keep your receipts and cancelled checks on home improvements you have made.  This record keeping can save you thousands of dollars in taxes by offsetting taxes you may owe when you sell. 

If you take a home office deduction, keep copies of records for at least 3 years in case of an IRS audit.

How long do I keep mortgage records?

Mortgage statements can be shredded as can past refinance records; save your most current mortgage refinance papers and the rest can be tossed.  As I mentioned above, save your original purchase documents until you sell the home. 

Call or e-mail me and I can refer you to a CPA or book keeper if you need additional help with questions you might have.  Happy tax filing!  :)

Warren Buffett says buy a house now!

In two recent interviews with Warren Buffett he again stated the obvious: Buy a house now!  Make sure you read the last paragraph of this post to hear another compelling reason to buy now!

Warren's reasoning comes from a unique idea he has of  "short-selling" your dollar with real estate investments.  With the value of the dollar depreciating 79% since 1990 (if you had a dollar in 1990, to buy the same stuff today, you need $1.79).  What does he mean when he says to short sell your dollar by investing in real estate? 

Here's why a real estate investment protects your dollar so well: Sure, values have dropped over the past 3 years, on average (nationally) by 42%, but they haven't dropped 79%!  That's a 37% return on your dollar IF it was invested in real estate in arguably the worst real estate market we have seen since the great depression.  He has a good point. 

With home values low, best mortgage rates in history, and the home affordability index the best since 1943, what better time to purchase a home than right now?? 

Want to save more money by buying now rather than after April 1, 2012?  Warren Buffett didn't even talk about another factor of investment savings to take advantage of in the month of March (possibly because he doesn't need an FHA loan? lol).  FHA mortgage insurance is increasing to 1.75% up front (currently 1%) and 1.25 monthly (currently 1.15%) on April 1st, 2012.  I calculated the increase in payment on a $170,000 sales price home would be $22/month ($264/year, $3168 over 30 years).  Buy now and protect yourself from this increase.  :)

You are a true professional in your business! Loan Closing February 10. 2012

Marty you are a true professional in your business!

While working with you last year with my rental refinance and on this loan, you have always been timely with processing, underwriting and closing updates.

When I needed a response, you were always quick to get back to me about my question.

You have been a pleasure to work with and thank you for your help!

Pam Martinez

Loan Closing February 10. 2012

Is a "seller's market" around the corner?

Home Supply Down 51% In 18 Months

According to the National Association of REALTORS®, Existing Home Sales rose to 4.57 million units last month on a seasonally-adjusted, annualized basis. This represents a 4 percent increase from December's revised figures and puts the benchmark figure at a 20-month high.

Not since May 2010 -- at the tail-end of the federal home buyer tax credit program -- have so many existing homes sold in a month. An "existing home" is a home that's been previously occupied and is not new construction.

Beyond the headline stats, though, there's a lot about which today's sellers should be excited -- beginning with the national home inventory.

With just 2.31 million homes for sale nationwide, the national housing stock is at a 5-year low and falling fast, down 21% from just a year ago. Furthermore, with low mortgage rates and an improving economy stoking U.S. buyers into action, at the current sales pace, the complete U.S. home inventory would be depleted just 6.1 months from now.
That's more than twice as fast as compared to July 2010.

Furthermore, analysts say a 6-month supply represents a market "in balance". Anything less is considered Bull Market territory and we're headed there shortly.

VA Interest Rate Reduction Loans

 

My name is IRRRL (we pronounce it "Earl" in the lending world) and it is a VA to VA Streamline Product, the last of the true streamline mortgage products.  

Here is why it is such a great product and a wonderful way for me to be able to say "thank you" to our Veterans for the service that they have given our country. 

 

§  I require NO income verification

§  NO need to verify assets

§  I don't care about credit

§  Debt to income ratios don't matter

§  Best of all, NO appraisal is needed (servicer to servicer refinance)

It's such a relief not to have to guess where we were in the loan process! Loan closing February 9, 2012

Marty, I wanted to say thank you to you and your team for getting my loan done so quickly!  The loan went really smoothly and I'm really glad.  I'm a nervous person by nature, always ready for the next shoe to drop, but it never did!

I was never worried because you kept me up to date on the progress of the loan. It's such a relief not to have to guess where we were in the loan process.  :)

As you know, this is the 2nd time you helped me buy a home.  I don't know which time you were more funny and entertaining, but I think it was this time.  I love your sense of humor, you are a tease!

I just want to say you are great awesome (okay, I'm teasing you now!)!  Thanks Marty!

Malissa Gaisford
Closing February 9, 2012

We have never had a better or more pleasant loan experience! Closing February 2, 2012

Marty, I wanted to thank you again for the great loan experience we had working with you.  Mark and I have never had a better or more pleasant loan experience!

Your communication was great, you were prompt with updates and you kept us updated every step of the way.  We really appreciated how much time you spent with us explaining the details of the loan process (it's been awhile since we have bought a home!).  We really liked that you were thorough in explaining ALL of the loan options to us.

And our letter wouldn't be complete if we didn't mention how you and Candace Mau are such a great Lender and Realtor team! We didn't realize the benefit of working with a team who works this closely together.  It was wonderful! You each watched out for us and had our best interest at heart! We definitely will refer you two when we can because of the professionalism and expertise you provide.  Thanks again!  :)


Mark and Jean Morgan
Mortgage Loan Closing-February 2, 2012

If you can't (or don't) want to sell: Remodel!

I just received the latest remodeling report from January, 2012, the National Association of Home Builders’ remodeling market index hit its highest level in five years.

It’s not that remodeling is moving into boom territory, said David Crowe, chief economist of the association, but rather that for many consumers, fixing up their house now fits their sentiments — and their finances — far better than selling or buying.

Interviews with builders and remodelers in different parts of the country point to important changes in homeowner strategies. In Seattle, Joe McKinstry, president of Joseph McKinstry Construction Co., says inquiries about possible remodeling projects have nearly tripled in the past 12 months.

“I feel like people are starting to say, ‘Well, we’re not going to move anytime soon because, if we do, we’re going to get 30 percent less than the house is worth. Why don’t we do something in the kitchen or bathroom for our own enjoyment, since we’re not going anywhere real soon?”

Needs for remodeling funds can come from a cash out refinance, coupled with lowest rates in history, to meet your needs.  Call me at 801-540-5108 and I can review your options.  :)

Every step of the way has been excellent! Closing January 24, 2012

With Marty, we have AGAIN had an excellent experience!  From the time you helped with my first purchase to the two refinances, every step of the way has been EXCELLENT!

Marty is a professional and that is why we come to him for our mortgage needs and we refer our friends and family to him!  Thanks again Marty!


Gene and Vicki Feltch
Closing January 24, 2012

Marty provided exhaustive and conclusive refinance analysis-Loan closing 9/30/11

From the first day that we called you for help with our loan refinance, we knew that Alan Whitman (who referred us to you) was right on the mark when he told me that you were the "go to guy" for help with loan analysis. You gave us exhaustive, conclusive, and very helpful analysis to help us determine which loan product would be  best for us.  

We are very hard to contact and you were consistently following up with us with phone calls, e-mails and text messages every step of the way.  We can’t thank you enough for the GREAT rate and low closing costs you were able to provide for us. It was amazing!  

Here's what we would say to our friends and family of what to expect when working with you:

• Marty is SUPER friendly :)
• Attentive
• Good at explaining details
• Has great time management skills
• Kept things quickly moving and updates with status

Brian and Charlotte Duncan 
Mortgage Loan Closing 9/30/11