As you know the interest you pay on your mortgage is tax-deductable.
Which means that if you’re able to pay your January 2010 mortgage payment before the end of December you’ll be able to increase your 2009 tax deductions. And that’s always a good thing.
Paula Henry who sells Indianapolis real estate wrote a timely post reminding everyone of this.
She also states that:
This time of year, it’s easier for some to postpone their mortgage payment until after the holidays. By paying in 2009, the mortgage interest paid can be applied against 2009’s itemized tax deductions even though the payment isn’t technically due until 2010.
In the end you’re paying it anyway… I know the holidays make it difficult. Plus, property taxes are due. In my case, I’m not escrowing enough per month; so I have an extra $400 I need to come up with in the next couple of weeks…
But, if you’re able, by pre-paying you’re guaranteeing that the tax-man will leave a little more in your stocking come April 15, 2010.
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Today’s mortgage rates–averaging just over 5.0% for a 30-year fixed loan–are steals. Experts agree that loans will hover in the 4.75% to 5.5% range all year. This bodes well for anyone choosing to buy a Wisconsin Rapids home this year.
As you begin to research mortgage information take note of the following four tips:
- Some lenders are requiring more information. This can cause banks to take longer to approve your loan. Make sure you know how long each bank will need to approve your loan. My suggestion: start your loan search early in your home buying process…
- To land the best rates you’ll usually need at least 20% down and a credit score of 720 or better. Remember, you get one free credit report per year from each of the big three (TransUnion, Experian, and Equifax).
- To qualify for a mortgage, your total debt should be less than 43% of your pretax income.
- Your home debt (monthly mortgage, insurance and taxes) should be less than 31% of your pretax income.
What next?
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No matter where we turn today, news about the economy and real estate market surround us. Foreclosures around the nation are on the rise, including Wisconsin.
As foreclosures have increased numerous strategies have been put in place to help limit the number of homes that ultimately end up in foreclosure including:
- agreements with the lender
- temporary forbearance
- loan modification
- short sale
Still, many Wisconsin homeowners are unable to stop the foreclosure process causing the number of foreclosure filings in the state to rise 21.4% from 2007 to 2008. This is the second consecutive year with a 20% plus increase.
Area Foreclosure Results
Wood county saw an increase of 45% in the number foreclosure filings in 2008. The total number of homes increased from 143 in 2007 to 207 in 2008. But we are not the county with the largest increase…
Adams county had the largest increase of any Wisconsin county, increasing 80% to a total of 222 homes in 2008. In central Wisconsin Juneau county increased the least by only going up 4%.
Overall, only 6 of 71 counties (Portage did not report) saw their number of foreclosures decrease or stay the same. Eighteen counties saw an increase of 30% or more.
This past weekend I heard that 45% of Americans are worried about making their next mortgage payment.
You can see a breakdown by county by clicking here.
It is my sincerest hope that none of you have to experience a foreclosure, either personally or through a friend or family member. If you see yourself falling behind please be proactive and seek help early.
Special Note: If you need assistance, or just want to know where to start, please get in touch. I have many contacts in the Wisconsin Rapids area and would be happy to help you find the help you need.
Wisconsin Rapids mortgage rates are the lowest they’ve been in years. Is your current mortgage payment to high or will your mortgage payment be adjusting to a higher rate soon?
Now that Wisconsin Rapids mortgage rates are the lowest they’ve been in years refinancing your Wisconsin Rapids home may be in your best interest.
The US Government has made it clear that they will do what they can to keep our economy moving forwards (or attempt to get it moving forwards…) — and keeping mortgage rates low is a key ingredient.
If you’re a Wisconsin Rapids homeowner locked into a higher adjustable rate mortgage or even a conventional fixed-rate mortgage this may be your best opportunity to refinance into a lower rate.
Refinancing your mortgage involves paying off your old mortgage with the proceeds from your new mortgage.
Why Refinance Your Wisconsin Rapids Home Loan?
Wisconsin Rapids home owners refinance their home for many reasons. Many want to use equity to pay expenses including credit cards, college expenses, home repairs etc. Another popular tactic is to simply keep the equity in your home which will lower your new mortgage payment.
Another reason to refinance is to improve the terms of your current loan. Change your 15 year mortgage loan into a 30 year home loan or vice-versa.
When is refinancing in your best interest?
- Any time you can lower your interest rate by more than 1% your mortgage is an excellent candidate to be refinanced. Over time you’ll likely come out ahead.
- In order to receive the lowest rates many lenders will require you have at least 20% equity in your home.
- You don’t need a jumbo loan. Rates haven’t come down much for loans greater than $417,000 so refinancing isn’t in your best interest.
Your next step is to contact your mortgage lender today to lock in your better rate.
A pre-qualification letter is an unverified, free test run of the loan application process. The lender will use your income, monthly debts, credit history and asset information as well as electronic credit reporting to verify your credit worthiness and estimate what you can afford for a mortgage payment.
A pre-approval letter is a firmer commitment by the mortgage lender based upon a complete application with a fee, credit check and employment verification.
A pre-approval letter says that a mortgage loan is approved for a certain amount of money for a certain amount of time, which is subject to an appraisal of the property.
If a pre-approval letter is required in your offer to purchase, the offer should clearly state what is needed and in what form. Because a pre-approval letter might be mistaken for a loan commitment, which will waive your financing contingency, your lender should indicate in your pre-approval letter that it is not a loan commitment.
You can see their are 3 levels that you’ll go through to complete the purchase of your next Wisconsin Rapids home.
First, a pre-qualification letter lets you know where you stand and is a guideline you can use to know how much home you can afford.
Next, a pre-approval letter is a more thorough evaluation of your credit and income. The pre-approval letter is guaranteed for a specific amount of time for up to a specific dollar amount and interest rate.
Lastly, a loan committment signifies that the financing contingency has been met and that financing will not hold up the closing on your new home.
Thanks to Wisconsin Real Estate Magazine
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PHONE: (715) 572-8372
My name is Adam Holberg and I’m a Realtor with First Weber of Wisconsin Rapids. This website is designed to inform and help bring conversation to a topic I love, real estate.