Nine tips for homeowners

 

Mortgage News Roundup

Some interest rates are going up, others are holding steady and a few more are going down. It’s quite the volatile week.
Today we’ll look at four things you need to know in 2014 for estate tax planning,

Estate Tax in 2014: 4 Things You Need to Know

The Motley Fool is reporting that no matter how much you earn or are worth, you should look into planning your estate carefully. In 2014, there will be four main things you should be aware of with estate taxes:

1. Higher exclusions will apply to the estate tax in 2014. Congress agreed to set the level at which estate taxes kick in at $5.25 million, avoiding expiring provisions that would have sent the exclusion down to just over $1 million. And one of the biggest improvements in the estate-tax laws is that the exclusion amount was set to adjust with inflation.
2. What’s included can surprise you. The biggest surprise for many people is that life insurance proceeds are often included in taxable estates even if the benefits go directly to beneficiaries rather than passing through the estate’s probate proceedings. So talk with a professional.
3. It’s easier for married couples to preserve their full estate tax benefits.Another good thing to come out of the recent legislation is that couples no longer have to worry about losing part of their joint exclusion amount in the event of their untimely death.
4. State limits for estate tax in 2014 can differ markedly from federal limits. Many states also charge estate taxes, and some of them have much lower limits at which their taxes apply

End of mortgage-fix break could mean big tax bills

CNN ran a story about how a tax break for people struggling with mortgage payments ends on January 1, 2014.
If a mortgage holder was able to get some of the debt forgiven by having some principle forgiven, they weren’t taxed on it thanks to when Congress passed the Mortgage Foreclosure Debt Forgiveness Act in 2007. Unfortunately, that law is set to expire at year’s end, and the forgiven debt will now be taxed as income.
Consumer advocates consider the tax unfair: “The money being taxed was ‘phantom income’ that existed only on paper,” said Elyse Cherry, CEO of Boston Community Capital, a non-profit, neighborhood stabilization group.
It will also damage foreclosure-prevention efforts, said Cherry. Many at-risk homeowners could not participate in programs if a big tax bill accompanies the fix.
If you’re thinking of making updates to your mortgage, or getting a new one, now is the time to talk to your mortgage loan officer and see what you can lock down before December 31 when a lot more changes will happen.

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Nine Tips for New Homeowners

 

Nine Tips for New Homeowners

You’ve closed escrow and have the keys to your first home. Your starter home or your dream home. It’s yours. But if you’ve never owned a home before, there may be some gaps in your knowledge.
So today we’re going to review ten tips for things you new homeowners should know.

Go Meet Your Neighbors

Sure, in the olden days, as soon as you put up your curtains, neighbors would bring over cookies. Unfortunately, everyone’s really busy these days and may intend to stop by, but don’t always make the time. So don’t be afraid to go over and introduce yourself. You could write a letter with your contact information and an open invitation to get together to say hello.
Your neighbors are vital for understanding known problems and safety issues in the neighborhood. Plus, it’s good to build that friendship so you can look out for one another.

Save for unexpected problems

A new water heater could cost $5000. Plumbing repairs could be $1000. And even if you have warranties, generally you have to pay out of pocket and get reimbursed. So it always pays to have a special account for unexpected problems that pop up along the way.

Form an inspection habit

We remind you regularly what maintenance you should do on your home in Spring and Fall. It’s important to follow through. Look into creating a spreadsheet of tasks and noting the last time you did it.
Buy a bunch of furnace filters and replace them regularly. If you bought a new house, chances are you don’t need to replace them right away. But if you bought a used home, who knows when the last time was that they were replaced.
Review your appliances and figure out how many more years you can get out of them. Then monitor them occasionally to see how well they’re still working.

Take advantage of tax credits

Get in touch with a good tax accountant to better understand how you can write off your points and mortgage interest.

Start keeping records

Keep records of when you purchased appliances, how long their warranties are, if you get free maintenance and when you need to phone to get the service. Keep records of repair work. Keep your contracts for services. You never know when it will come in handy.

Review your insurance

You may need to increase your auto insurance, or obtain life insurance because of your new asset.

Install programmable thermostats

Save money right off the bat by keeping the HVAC turned off when no one is home.

Mark any cracks in the foundation with dated masking tape

Don’t forget to use permanent ink on the tape. You could also mark the area with masking tape and put a date on it and a number, and then keep a spreadsheet with the number, date and approximate size of the crack.

Plant shade trees near your house

They will grow and provide much needed shade during the hot months. Plus, it gives you a sense of settling into your own home.
And even if you’re not a homeowner, you can start using any of these tips today.
What’s your favorite tip for a new homeowner?