Home interest deduction - my head is spinning

The home mortgage interest deduction has become a whipping boy or girl for much of what ails the American economy. Some see it as a drag on the nation's finances, others as an engine. In any event, this blog post, The Sacrosanct Mortgage Interest Deduction appearing the Economix blog of the New York Times, will turn your head in two directions at the same time.

When people talk about “sacred cows” in the tax code, the deduction for mortgage interest is usually at the top of the list. But it is just one of many tax expenditures benefiting homeowners. Other important ones include the deduction for property taxes and low taxes on the gains from sales of primary residences.

Contrary to popular belief, the mortgage interest deduction wasn’t adopted to encourage home ownership. The original income tax enacted in 1913 allowed a deduction for all interest on the theory that it was largely business-oriented. According to Dennis Ventry of the University of California, Davis, School of Law, only a third of homeowners carried a mortgage in 1910.

OK, so now the writer, Bruce Bartlett, starts with the stats, comparing America with Canada and other countries.  So I am going to stop here and have you read the full article and the comments that follow.  That's where the most interesting ideas will be found!

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Single women buy more homes than single men

The New York Times reports on an interesting statistic [I do hate statistics] showing that more homes are bought by single women than bought by single men.

The number of single people buying homes has dipped in the last few years, but single women remain better represented among buyers than single men. Today they are buying at roughly twice the rate.

According to the National Association of Realtors, single women accounted for 16 percent of home buyers last year, lower than their long-term average of 20 percent. Yet they were still well ahead of single men, who accounted for only 9 percent.

But it's not all rosy-

But then again, many single women who have never owned a home are intimidated by the process, said Jeanie Douthitt, an agent with Private Label Realty in the Dallas area.

She tries to ease these fears with a step-by-step program she created called Smart Women Buy Homes. The idea is to educate women new to the market, a group that includes single moms, divorcees, recent college graduates and older professionals who have never been married.

Want to read more?  Go to Homeownership: Where Single Women Prevail.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Don't take "no" on your mortgage application laying down

From the Wall Street Journal.
"When the Bank Says No, Draft a Rebuttal- A rebuttal letter can help you fight a lower-than-expected home appraisal"

The buyer is ready to buy, and the seller is ready to sell. Then comes the low blow: The home is appraised below the contract price.

In order to close the transaction, the buyer has to come up with a greater down payment.

A possible recourse, albeit one with slim chances, is a formal rebuttal letter, also called a reconsideration letter, prepared by the borrower or loan originator, with input from a real-estate agent or an appraiser.

To challenge an appraisal, borrowers should make their case with the commissioning lender, said Michael Vargas, president of New York-based Vanderbilt Appraisal Co., which specializes in high-end homes. Lenders, however, are prohibited from communicating directly with appraisers, under the Home Valuation Code of Conduct (HVCC), rules enacted by Congress in 2009 to reduce mortgage fraud. Therefore, the lender will commonly send the borrower's rebuttal to an appraisal-management company, a third-party entity that hires appraisers, for review.

Read the full article.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Rise in interest rates slow the refinance market

 From where I sit looking at new files being opened, it was clear that the increase in interest rates had a dampening effect on the NJ mortgage market.  So reports the New York Times.

With mortgage rates hitting their highest level in two years, the rush to refinance has slowed to more of a stroll.

As of the end of June, refinancing activity represented 64 percent of all mortgage applications, the lowest volume since May 2011, according to the Mortgage Bankers Association.

 The rise in rates by “better than a point” since early May has effectively killed off a lot of the refinancing business, in what amounts to a “purely an interest-rate-driven decision,” said Keith T. Gumbinger, the vice president of HSH.com, a financial publisher. But getting into a new mortgage still makes sense for some categories of homeowners.

 Who might benefit from the rate increase?

The most obvious candidates are borrowers whose rates are 5.5 percent or higher.

 Another group of potential borrowers are those who found their homes under water value-wise but who've built up equity because of the rise in prices.

Read the full article, Refinancing, Despite a Rate Rise.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

* * * * *

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Vested Land Services client Treetop Development buys in Queens, NY

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

 * * * * * *

Long time client Treetop Development has made a major acquisition in Queens, New York. According to Crains,

Teaneck, N.J.-based Treetop Development, which three years ago began snapping up residential buildings across the Hudson River in northern Manhattan, has now jumped across a second river, the East.

The developer has acquired Saxon Hall, a 16-story rental apartment building located at 62-60 99th Street in Rego Park, Queens, for $85.25 million.

Read the full article here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content