New Law Makes Mortgage Insurance Tax Deductible

RALEIGH, N.C., Dec. 9 /PRNewswire/ -- Home affordability and the housing industry received a big boost today from Congress, which approved a measure that would for the first time allow lower- and moderate-income homebuyers to deduct the full cost of mortgage insurance from their federal taxes in 2007. The provision was included in the omnibus tax bill approved by Congress early Sunday morning.

"Many homeowners who used adjustable and exotic loans to buy houses during the housing boom of the last few years are now feeling the pinch as their interest rates reset," said Kevin Schneider, president of the U.S. mortgage insurance business for Genworth Financial, Inc. GNW. "This new legislation gives homebuyers the option of choosing a low down payment mortgage that offers both tax deductibility and fixed monthly payments. This is an important step forward for U.S. housing."

The legislation passed today makes all mortgage insurance premium payments deductible for homeowners with adjusted gross household incomes of $100,000 or less. It applies to all new mortgage originations beginning January 1, 2007.

"This tax relief will aid nearly one million Americans looking to buy a home with an affordable mortgage in the coming year," Schneider said. "In today's volatile housing market, a 30-year fixed rate mortgage with mortgage insurance is a more secure option for homebuyers, and it can cost less each month than a combination of two loans."

Private mortgage insurance enables people to realize their dreams of homeownership sooner by making mortgages with low down payments possible. With it, homebuyers can purchase or refinance a house with as little as five percent, three percent or even no money down. Mortgage insurance generally is cancelable after the owner's equity in the home reaches 20 percent.
Copyright 2006 PRNewswire

Think Selling Your Home in Winter Is Unfavorable, Think Again!

Most real estate markets experience a holiday slowdown. Charlotte’s is no different. Many real estate agents give up and begin turkey stuffing or Christmas shopping. Also, winter finds many agents getting ready for the spring market instead of focusing on the here and now. The holidays are usually filled with serious buyers who often are willing to act quickly to get into a home before the first of the year. While a lot of homes don't look their best in winter, but serious buyers usually don't care.

Dressing Your Home for the Holidays
The holidays offer sellers a perfect opportunity to dress up the home for prospective buyers. That said—don’t overdo your decorations. You may like your home bathed in enough flashing lights to guide planes to the Charlotte-Douglas International airport, but your tastes and the buyers' rarely mesh. If they prefer gaudy, let them decide after settlement.

Showing Your Home During the Winter
Showing a home in winter can sometimes be challenging but again you are dealing with motivated buyers. Well placed photographs, showing the home in various seasons might help give you a competitive advantage. Bring as much available light into the home as possible. Keep the curtains, blinds and shades open and introduce additional lighting—a lamp—in darker rooms.

Showcasing Your Home’s Efficiency
Some buyers are concerned over energy costs. Focus on what you have done to keep those expenses under control. Is the crawlspace insulated? What about the attic? Consider displaying energy bills from last November or December.

Less Competition in the Winter Months
Since most markets are beginning to experience increases in inventory, you'll probably be better off selling now than waiting till the spring, when you have to compete with the rest of the market.

The Johnny White Team Real Estate Blog

Hello. My name is Jay White, and I work with one of the largest, most successful real estate teams in the Charlotte area. We set this blog up to provide our clients (past, present, and future) an opportunity to ask questions, express their opinions, and share their experiences with us and each other.

The Johnny White Team provides world-class representation to clients involved in real estate transactions. We specialize in: Residential Marketing, Residential Sales, New Construction, Builder Representation, Relocation Consulting, and Investment Property.

Feel free to say anything you wish, but please respect the views, opinions, and thoughts of other people. Thanks for visiting. You can experience our website at www.TheJohnnyWhiteTeam.com