If any of you have hurt by mortgage crisis, could you please tell me your story and how do you handle your finance. How much percentage did your house’s price dropped? Is it affected your lifestyle?

The American Dream is often paired with owning one’s own home. For decades Legislator’s have protected that dream with allowing home owners to claim the mortgage interest paid on their homes as a tax deduction. With a possible phase out of this deduction, could the dream fade?

“There are no cows more sacred in the tax code than the deductions for mortgage interest and property taxes. Together, they add up to at least the $ 75 billion annual subsidy for housing and Homeowners. ” The New York Times.

In 2002, 37.2 million taxpayers claimed the deduction, writing off $336.6 billion, or about $9,000 per taxpayer. Representing about 37% or so of itemized deductions, it was slightly more than itemized deductions for deductible state and local taxes, and twice as much in deductions as charitable donations. Clearly, the mortgage deduction is important and worth a huge amount of money.

In 2005 it was estimated that:

* The mortgage interest deduction will cost the Treasury $72.6 billion, according to congressional estimates.

* The $250,000 and $500,000 tax-free exclusions of home sale profits for single sellers and joint filers, respectively, will cost $23 billion .

* Property tax write-offs cost $20 billion, and tax subsidies for local and state housing bond programs account for $1 billion.

When a congressional committee examined the distribution of homeowner benefits for 2004, it found that people earning $200,000 and more a year – just one-half of 1% of all homeowners filing for deductions – pocketed 22% of the $70.2 billion in write-offs in 2004.

In 2007, Rep. John D. Dingell (D-Mich.) unveiled a draft of his “carbon tax” legislative reform package. Part of this draft legislation was a phase out the mortgage interest deduction on large homes. The phase-out schedule for the mortgage interest write-off, beginning with houses of 3,000 square feet, which would lose 15 percent of their deductions, and ending with houses of 4,200 square feet and larger, which would receive no deductions at all.

Dingel said: “In order to address the issues of climate change, we must address the issue of consumption-we do that by making consumption more expensive.”

Naturally, with the real estate market bust, the Dingell package was shelved. Once the housing market recovers, lets’ say two years from now, it’s a very good bet the administration will be looking hard at ways to increase taxes to pay down the huge bailouts. The unusual financial troubles and the move to green, will be the perfect time to push through such legislation. Unlike the Dingel proposal ,which was aimed at larger homes, the future legislation will most probably cover all mortgage interest deductions. To increase its’ chance at passage, it is a good bet it will be a phased in plan with deductions decreasing over a number of years.

To get the reversal of the sacred deduction started, President Obama’s impending budget proposes a cap on the mortgage interest rate deduction. Couples earning $208,850 or more would loose the deduction. Where currently households at the 33% and 35% tax rates are allowed the deduction, Obama would reduce their deduction to only 28% of the value of those payments. This is likely a first step to what seems to be a total elimination of mortgage tax deduction. If (when) this passes, Obama will find it easier to lower the earning cap for the mortgage tax deduction, leading up to an even lesser amount in the future. It seems on the horizon that the mortgage interest rate will be only for low income earners.

Colorado mortgage shopper may wonder, while they are shopping around for a loan, if there are different mortgage rates in the state? —? higher or lower than the rest of the nation. The basic answer is no, when you compare rates for mortgages in Colorado to elsewhere.

Mortgage rates in Colorado and other states are based on federal standards. But there will be the perception that the rates are higher in areas where the cost of living is higher. For Colorado mortgage rates, this is often the case.

Impact of Jumbo Mortgages on Mortgage Rates in Colorado

Why are there higher mortgage rates in Colorado? Mostly because of the jumbo mortgage. Mortgages in Colorado very often go over the threshold of $417,000 that qualifies ‘conforming’ Colorado mortgage loans. Any Colorado mortgage above $417,000 is considered a jumbo mortgage loan. This is because there are such great homes and properties in Colorado. Better homes mean higher mortgages in Colorado, often necessitating a jumbo mortgage.

Jumbo mortgage rates are above those of standard mortgage rates in Colorado by about a quarter to a half of a percentage. Why? Because there is a higher risk because of a lack of federal backing and the investment’s large size. But this is true not just in Colorado, but of all jumbo mortgages.

The bottom line is that the mortgage rates in Colorado are not higher than normal, but it is the mortgages in Colorado that are higher, because there are more jumbo mortgages in the state, which pairs more Colorado mortgages into slightly higher interest rates.

Impact of Jumbo Mortgages on the Mortgage Buyers in Colorado

For mortgage buyers in Colorado, this means that finding a good Colorado mortgage broker is crucial when you search for a deal.

No matter the size or the classification of the loan, rates will differ between Colorado mortgage brokers. You may be able to obtain a loan from an out-of-state lender instead of an in-state Colorado mortgage broker, but that may be a mistake.

Consider this: Who knows more about Colorado home financing than an in-state Colorado mortgage broker? A broker in another place in the nation will not be as informed about the unique housing market. A Colorado mortgage broker understands the different types of properties and mortgage loans in Colorado. A Colorado mortgage broker offer many types of loans for many different types of homes, from small family homes to large homes requiring a jumbo mortgage, and property uses from investment, vacation, luxury or permanent homes.

Smart shopping is key in the search for a qualified and helpful Colorado mortgage broker. The small differences in loan fees and mortgage rates in Colorado can mean big differences in payments and interest paid during the term of the loan. Choosing a broker for the mortgage in Colorado, though, is not just about rate. Fees and closing costs should be a big factor when deciding on a loan product. An informed borrower ought to have all of this knowledge in their mind when they find a honest and trusted Colorado mortgage broker who can explain to a borrower the different parts of the process, from rates to fees to other options. It’s best that a borrower chooses a Colorado mortgage broker that is the best fits for their finances.

Clip of Nationally Syndicated Consumer Advocate Clark Howard, Discussing Money Merge Account Equity Accelerator Mortgage Fraud.

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www.SunwestTrust.com, 800-642-7167. You probably have heard about the national credit crisis. During this time of national crisis have you ever considered becoming a bank? Thats right; you can become a bank for a friend or family member.

I have a VA mortgage on my home. My husband thinks that the mortgage has to be paid in full before we can use the VA benefit again. Does anyone know how this works?

First and foremost; the bank does not, nor do they want to own your home. So why do so many people believe this? Prior to FHA getting involved in 1988, the lenders would take an equity position in their Borrowers homes. That practice has resulted in unfavorable feelings towards today’s reverse mortgages. The Federal Housing Administration (FHA) has set the new standards and guidelines for HECM reverse mortgage loans and their involvement has produced a safe, well thought out and balanced loan for Seniors. Look below to find some of the pros and cons of reverse mortgages.





The Upsides



There are no monthly payments associated with a reverse mortgage. You will never be required to make a monthly payment while you reside in your home.

You stay on title and any equity remaining in the property is yours. The lender does not take title to your home!

You can never owe more money than your home is worth. HECM reverse mortgages are “nonrecourse” loans. This means that no matter how long you stay in your home, you will never be obligated to the lender to pay them any more than the value of the property, even if the loan exceeds the value.

A reverse mortgage will not effect Social Security or Medicare benefits.

Qualifying is easy. You must be at least 62 years of age and have value in you home. You do not not have to prove income or have good credit. The value of your home and your age determine loan amounts. It’s that simple.

The money you receive from your reverse mortgage is tax free.

The funds you receive can now be designed for your specific needs. Depending on the amount of funds you require, you can create your loan with a fixed or variable rate. You can also design your loan to provide one upfront payment of all cash, you can receive monthly payments or keep all of the funds due you in a line of credit and withdraw the funds as you need them. You can also create a combination of all three methods.

The funds from a reverse mortgage may be used anyway you want. After paying off any existing mortgages, tax liens or heath and/or safety issues regarding your home, you can use the funds for any purpose you desire. Take a vacation, you deserve it. Make repairs or upgrades to your home. Put all the cash on 7 and spin the wheel, the funds are yours.

You built the equity in your home over years of hard work, now you can let this equity work for you. You can feel the self reward and know that you are not necessarily reliant on your children or other family members to help you. There seems to be a since of pride that goes along with method.

FHA insures these loans. Given the state of this economy, you do not want to find out that the bank funding your monthly payments has gone out of business. With FHA insuring your loan proceeds, you can be comfortable knowing that your next payment will be guaranteed by the US government.

NRMLA. Lender/members of the National Reverse Mortgage Lenders Association are an elite group of individuals who are dedicated to helping American Seniors fulfill their retirement dreams. This group is available for you.



The Downsides



Lenders generally charge their origination fees, FHA upfront mortgage insurance (MIP) and other closing costs that add up in a hurry. The flip-side to this, however, is that if you really need the funds from the equity in your home you could borrow the funds traditionally as long as you can afford the monthly payments or sell the property. If you sell the property, you are left without a home to live in and the 5-6% cost to sell your home is considerably higher than those fees assessed with a reverse mortgage. The longer you live in the property the lower the costs average out.

Most reverse mortgages require utilizing a variable rate. This can be overcome by using a fixed rate. Unfortunately, the fixed rate reverse mortgage requires that you draw all funds available to you and may not be the right loan for all applicants.

Your mortgage debt rises fairly quickly, but, there is no surprise that the loan increases rapidly since you do not make any payments while living in the property. The interest that would be due as in a traditional loan simply adds on and creates a new higher principle value.

Borrowers are of course responsible to keep the property properly maintained and they must stay current with their homeowners insurance and property tax.





All in all I believe the upside to reverse loans far outweighs the downsides. Call on a NRMLA member and do your homework. Vist us online: www.mlsreversemortgage.com

These are heavy days for Canadian homeowners. If you’ve been in your home even a few years, you’ve probably already enjoyed a modest climb in the value of your home. Even if you don’t intend to sell, it’s good to know that your real estate investment is doing well. But we’re also enjoying an environment in which mortgage rates have reached historic lows.

That combination — strong valuations and low mortgage rates — has an unprecedented number of Canadians looking for ways to capitalize on the great opportunities available to them.

Whether it’s to buy their first home, trade up, or take equity back out of their homes, Canadians are jumping at the opportunity to borrow at today’s rock-bottom rates.

While many homebuyers are reconsidering the value of fixed-rate mortgages to lock in those low rates, you should keep in mind that adjustable-rate mortgages – the darling of the dropping rate trend – can still offer real value to homeowners. It’s a matter of finding the right combination of mortgage features and options.

As banks have been joined by other lending institutions, we have seen our menu of ontario mortgage options grow accordingly – with some innovative new mortgage types now available to help Canadians take advantage of today’s unusual opportunities.

One of the most innovative mortgages we’ve seen in a very long time is a new adjustable-rate mortgage with some very compelling features. First, it’s based on an institutional rate benchmark known as Bankers Acceptance. Most of us are familiar with the rate benchmark known as Canadian Prime – and we are accustomed to assessing mortgage rates based on Prime. The BA, on the other hand, is the rate at which banks will lend money to one another – and it’s typically a lower rate (sometimes much lower) than the prime rate offered to a bank’s best customers. The new BA-based mortgage – compared to the best prime-based mortgage available – could have saved a mortgage client a bundle over the last several years, primarily because the prime rate tends to be “stickier” in an environment where rates are falling. Often, the more fluid, market-based BA rates deliver the rate change more quickly. The BA rate is no trade secret, by the way; pick up a copy of your favourite financial paper and look for the published money rates to find the Bankers Acceptance Rate.

But the attractive rate structure is not the only perk. The same BA-based mortgage – so welldesigned to help clients wring the last quarter point from their mortgage rate – now also comes with a rate cap which guarantees that your rate will never climb higher than 2.15% above the starting base rate – no matter what happens to rates during your mortgage term. There’s no worry about locking in too high because the rate is always adjustable down.

Only the ceiling is fixed. It’s a homebuyers’ dream:

A mortgage with limited upside and unlimited downside. If you’re thinking about buying a home this year, or you haven’t had your mortgage reviewed in the last several months, take the opportunity to get an expert assessment of your many options from a mortgage professional. It could be the best investment you’ll make this year!

I have been paying the same amount in rent as I would pay for a mortgage and I would really like to own a home. I know there are loans for poor credit but I am afraid that I will pick the wrong one. I realize with poor credit I shouldnt be looking into this but I am now better capable of handling my finances and have a steady income. I know which home I would purchase, just need to find a good mortgage. I dont want to jeopardize my family and end up with the wrong loan.
I have about 25,000 in savings for a downpayment which I realize I still need more……to avoid pmi . I plan to stay in the house for a long time.