Don Parsons’ Home Digest Newsletter Sep-Nov 2014

Be sure to checkout the latest news and information in the September-November 2014 Edition of my Home Digest Newsletter. The newsletter is packed with useful information, tips and strategies to benefit your personal and financial life. Among the many topics covered are eliminating mortgage insurance, IRS scam, solar power, personal safety and more. Here is a table of contents for this issue.

  • sep-nov-2014-tnUp Close & Personal
  • Thinking Solar Power
  • About Reverse Mortgages
  • Buyers & Sellers Jump in Now?
  • IRS Scam
  • Healthiest Spring Buying Season in 3 Years
  • 3 Ways to Eliminate Mortgage Insurance
  • A Penthouse for Your Pet
  • Saving Lots of Money & Bad Experiences
  • Free NFL Football Schedules
  • Personal Safety
  • E-mail Alert

Click here to download the complete Don Parson’s Home Digest in PDF format.

 

Eliminating Your Mortgage Insurance

Eliminating Mortgage Insurance can be done several ways.  Rules have changed and then changed again, as is evident of FHA, the most popular low down payment program in the industry. Also private mortgage insurance (for conventional loans) has had some changes as well, due greatly to the housing meltdown.  With appreciation beginning to make housing healthier many folks have begun to refinance and eliminate their mortgage insurance.  (Those who can’t or need to wait a while longer, please see the very important article in this Digest entitled: Tax-Deductible MI ends 2013, where if you have not already taken advantage of this, you may be able to on your 2013 tax return filing)

As mentioned above, housing appreciation has gone through the roof in many areas and we
are finding that many clients, whether they have an FHA or Conventional loan, with MI, are being able to refinance and eliminate the MI.  However, with interest rates going up it is important that anyone with MI, considering refinancing, do it ASAP.  If you have MI or know someone who does, please have them contact my office immediately for a free 10 minute review.

If you can’t refinance for one of several reasons and you must live with your MI, I have an article in more depth on tax deductibility of mortgage insurance on my blog at www.donparsons.com/newsletter which lays out when your MI will automatically drop off, and also what can happen after 2 years.  Caution, these two articles are very detailed, written for the industry.

Private Mortgage Insurance Cancellation: Your guide to Cancelling MI in accordance with the Homeowners Protection Act of 1998

When and How to Cancel Mortgage Insurance

 

Mortgage Insurance Cancellation – What You Need to Know

mortgage-ins-250Effective July 29, 1999, the Homeowners Protection Act (HPA or Act) requires that private mortgage insurance be cancelled when a loan reaches certain, specified thresholds. The Act’s MI cancellation policy applies to privately insured first mortgages:

  • on single-family, primary residences, AND
  • closed on or after July 29, 1999, AND
  • for the purpose of financing the acquisition, initial construction or refinancing of the dwelling.

Following the HPA’s lead, Fannie Mae and Freddie Mac have  updated their own MI cancellation policies, in accordance with the Act, for privately insured first mortgages.

For more information, please check out the informative free downloads here:

 

Mortgage Insurance – Tax-Deductible?

(courtesy of MGIC Insurance, with some editing)

MI Tax Deductibility passed as part of the American Taxpayer Relief Act of 2012.

Borrower-paid MI premiums are tax-deductible through the year 2013. Borrowers should consult their tax advisors regarding MI tax deductibility. See disclaimer note below. [Read more…]

MI Tax Deductibility in the American Taxpayer Relief Act of 2012

The American Taxpayer Relief Act of 2012 addresses the deductibility of borrower-paid MI premiums and is addressed in an article published on the MGIC Website. Borrower-paid MI premiums are tax-deductible through the year 2013. Borrowers should consult their tax advisers regarding MI tax deductibility. Click the following link to read the full article: “MI basics: tax-deductible MI

You may also download a PDF printout of the article by clicking on the image below:

mgic-pdf-cover