Late Mortgage Payments Reach High

Late mortgage payments shot up to a 3 1/2-year high in the final quarter of last year and new foreclosures surged to record levels as borrowers with tarnished credit histories had trouble keeping up with monthly payments.

The Mortgage Bankers Association, in its quarterly snapshot of the mortgage market released recently, reported the percentage of payments that were 30 or more days past due for all loans tracked jumped to 4.95 percent in the October-to-December quarter.

Read the complete story here:

Are you finding it more difficult to keep up your mortgage payments?  Leave us a comment below.

Income Tax Savings

Because of income tax deductions, the government is basically subsidizing your purchase of a home.  All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.

For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. During the first year you would pay $9969.27 in interest.  If your first payment is January 1st, your taxable income would be almost $10,000 less – due to the IRS interest rate deduction.

Property taxes are deductible, too.  Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation.

As always, we advise you consult with a tax professional about your tax situation.  If you have a comment or question, please feel free to leave that below.

Home Buying Advice by Sunvestor's

"A Sunvestor's Guide to Owning a Great Home AND a Great Investment" offers street-smart preparation for buying the right property at the right price, while avoiding financial pitfalls along the way. The step-by-step format guides you through each phase of the process, but goes way beyond the basics.

Taking an investor's approach to purchasing residential real estate, it's perfect for both first-time home buyers and seasoned professionals.   Written by a real estate appraiser and broker, the book emphasis how doing your research and buying in a methodical, value-oriented way can really pay off.

Most homes won’t appreciate in value the way they have in past few years so buying mistakes will be more evident upon re-sale. The reader will learn how to make money at purchase and 20 ways to find the type of property that goes up in value faster than average.

Find out more about Sunvestor’s Guide…

Dream Homes Vary By Generation

What's your dream house? A marble manse stuffed with art? A swinging pad where the stereo's always thumping and the hot tub's always bubbling? A clean, well-lighted place … that also has a Viking range and a Sub-Zero fridge?

Your answer says a lot about your values and attitudes — and may have a lot to do with when you were born. So say the authors of a new study of 1,000 home owners nationwide. The market research company GfK Roper Reports asked Americans to prioritize the amenities they'd have in their dream home — not necessarily amenities they already have, or will have in their next home. The different responses, from baby boomers through first-time generation-Y buyers, reflect how different features appeal to different ages and also how tastes have shifted over time.

Take a look at the different value sets among the generations…

A Matter of Small Things When Buying a House

When looking for a house, the majority of the potential homebuyers usually pay more attention to the things of considerable size – big house, big rooms, big yard etc.  What is usually being overlooked are the small things that can create big problems later.

One thing usually overlooked by a future homeowner is the closet space in the house.  Often times it is only after moving in a that a homebuyer discovers the closet space in the house is not ample for the whole family.  One possible solution to this problem would be to purchase a wardrobe and ask the seller to pay for it.  The seller may or may not agree.  Moreover, the new wardrobe may take a lot of space in your previously spacious room making it less attractive and comfortable.

The second thing likely to be overlooked is whether there are ample electrical outlets in every room.  The problem of having too few outlets can be solved by using extension cords.  However, if the same problem occurs in several rooms, solving it with extension cords could become a fire hazard.

The third small thing that can be a big problem later is whether all the rooms have heating and air conditioning.  If the problem is spotted before buying the property, the seller may pay for new heaters and air conditioners.  However, overlooking a small detail like this may equal a great number of very cold, as well as some unbelievably hot nights.

Are you a cautious or a reckless buyer?  Share your experiences with us.  We would love to hear from you!