Interest rates: The big freeze

By Zain Asher, Lauren Gensler

 

 

 

Anxious for interest rates to rise in 2013? Take a chill pill.

The low rates of the past few years -- which have warmed the hearts of mortgage applicants but been cold comfort to savers -- are unlikely to budge soon. For that, thank (or blame) the Federal Reserve.

To spark growth, the Fed is aiming to keep the influential rate at which banks lend one another money between 0% and 0.25%, and it expects that number to be "exceptionally low" until at least mid-2015.

"This is unprecedented," says Baltimore financial planner Tim Maurer. "We've never had such low interest rates for such a long period of time."

Here are savings and credit strategies suited to the current climate:

MORTGAGES

Freeze your rate. Buying a home? Rates are at 40-year lows, so lock yours in with a fixed-rate mortgage; interest on a 30-year fixed was 3.57% in January.

"It's a sure thing," says Keith Gumbinger of mortgage data provider HSH.com.

Related: Sizing up bond investing risks

Lower your term. Refinancing? If you're certain to move within a few years, consider an adjustable-rate mortgage; initial rates on five-year ARMs were 2.68% in January.

Otherwise, use low rates to shorten your mortgage's term and cut interest costs. Should going from a 30-year mortgage to a 15-year be too big a payment hike, get a 20-year version. (About 15% of refinancers opt for a 20-year, says the Mortgage Bankers Association, up from 12% in 2011.)

 

You'd pay $905 a month on a 30-year $200,000 mortgage, $1,370 on a 15-year, but only $1,165 on a 20 (though 20-year loan rates are only slightly lower than 30-year rates). Run the math with the mortgage calculator at bankrate.com.

SAVINGS

Go long on CDs. Amid weak rates, park cash in a long-term CD with low withdrawal penalties, says Colorado Springs financial planner Allan Roth.

Put $50,000 in an Ally Bank (ally.com) five-year CD, lately yielding 1.58%; if rates rise, walk away in two years with $1,469 in interest (after a charge that cuts your rate to 1.45%). The same money in an average two-year CD yielding 0.45% would net only $451.

Beware rising-rate come-ons. Banks' new lure for savers: CDs with an option for a higher yield if rates rise. The catch is that you usually get a low initial rate.

"Shop around. Compare the rising rates with the fixed equivalent," says Larry Swedroe, research director at Buckingham Asset Management in St. Louis.

Related: 12 ways you're wasting money

The best of the bunch: a one-year rising-rate CD from CIT Bank (bankoncit.com), yielding 1.05% in January.

Go with the locals. For cash you need regular access to, you'll get the best rates at online banks. Union Federal Savings (unionfsb.com), for one, paid 1.05% in January.

If you want a nearby brick-and-mortar bank, though, think small. Michigan's Alden State Bank offers 0.30% on savings, vs. 0.01% from giant Bank of America.

"Community banks are somewhat less affected by the Fed and more by local demand," says Casey Bond, managing editor of GoBanking Rates.com. Go to findbankrates.com for the best rates in your area.

CREDIT CARDS

Rates are high, but you can still find good deals.

Transfer a balance. With card issuers in no hurry to lower rates -- the average is nearing 15% after more than two years in the 14% range -- a good way to land a rock-bottom rate is with a balance-transfer offer.

The best deal now: The Chase Slate Card, which has 15 months of 0% APR on purchases and transfers, plus no fee to transfer balances within the first 60 days.

Related: Reverse mortgage -- Is it too risky?

As with other credit card come-ons, issuers reserve their most enticing transfer offers for top-tier prospective customers. To join that club, says Ben Woolsey of CreditCards.com, you'll need a credit score above 750, up from 725 in 2008.

Get your reward. If you're not the type to carry a balance, go for a rewards card. Cash back is a hot deal, with initial rewards 20% more lucrative than last year, reports Cardhub.com.

The Capital One Cash Rewards Card offers a $100 reward for spending $500 in the first three months, 1% cash back on all purchases, plus an extra 0.5% bonus at each year's end.

Sickly savings rates

Interest rates paid by banks are far lower than in the past.

Foreclosure filings fall to lowest level since 2007

By Les Christie

 

 

Foreclosure filings in January plunged to their lowest level since April 2007.

Notices of default, scheduled auctions, bank repossessions and other filings fell to 150,864 last month, a 7% decline from the previous month and a 28% drop from January 2012, according to RealtyTrac. New foreclosure filings fell to the lowest level since June 2006.

"We're now well past the peak of the foreclosure crisis," said Daren Blomquist, spokesman for RealtyTrac.

Regulations that took effect in California contributed to the dramatic decline. The state had long been recording the highest number of foreclosure filings of any state. But on January 1, a Homeowner Bill of Rights became law, offering more protections for California borrowers in default. As a result, new foreclosure filings in California fell 62% in January.

Under the new rules, mortgage servicers must halt all foreclosure proceedings once a borrower applies for a mortgage modification. Servicers will also face fines of up to $7,500 per loan if they record and file multiple unverified documents in foreclosure proceedings.

"There's was a bum's rush to get people out of their homes before this law came into effect," said Bill Purdy, a real estate attorney in Soquel, Calif. Once 2013 began, filings in California dropped abruptly, down 40% from December and 65% from January 2012.

 

Last month marked the first time since January, 2007 that California did not lead the country in foreclosure filings. Instead, Florida took the top spot, with 29,800 filings -- or one out of every 300 homes -- followed by Nevada and Illinois.

The nation's foreclosure problem isn't fixed -- but we're getting closer, according to Blomquist. Filings are still running at about twice the pace of 2005, before the subprime mortgage crisis derailed the housing market. And foreclosure auctions rose in 26 states, including four big ones: Florida, Illinois, Pennsylvania and New Jersey.

But bank repossessions, the end game for borrowers when they actually lose their homes, fell to less than half the record 102,134 set in September, 2010. Blomquist is forecasting steady improvement through 2013.

"It's likely that by this time next year, we'll start to see 2005-type, pre-crisis numbers again," he said.

Home prices finally returning to normal

 

Here is a very interesting article about how home values are expected to increase/ appreciate in the next few years.

 

 

After years of wild swings, the U.S. housing market is slowly returning to normal.

 

The latest forecast from Fiserv (FISV) Case-Shiller predicts home prices will increase by an average of 3.3% annually over the five years ending September, 2017.

 

"2012 was the first year since 1997 that the housing market has resembled something [close to] normal," said David Stiff, Fiserv's chief economist. "For the past 15 years, home price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology."

From 1998 until the housing bubble peaked in 2006,home prices grew by 5% or more a year. But once the bubble burst, home prices plunged, falling 30.5% through the end of September 2012.

Related: Million-dollar foreclosures

It wasn't until late 2011 that markets started to stabilize, according to Stiff. Between September 2011 and September 2012, average U.S. home prices rose 3.6%. By then, 62% of the 384 metro areas Fiserv tracks reported rising home prices, up from just 12.5% of all markets during the same period a year earlier.

Many of the metro areas hit hardest by the housing bust recorded the biggest price gains during those 12 months. In Phoenix, for example, prices climbed back by nearly 21%; prices in Detroit rose almost 16%; and homes in San Jose, Calif., gained 12.5%.

 

 

Values continued to decline on Long Island, N.Y., however, where prices fell 8.1% and where Stiff said the turnaround in median income lagged the rest of the nation by about a year. Brunswick, Ga., also saw declines, down 7.1%, as did Valdosta, Ga, off 6.9%. Both areas saw jumps in foreclosures.

Home prices: Check your local forecast

By the end of this year, Fiserv predicts that home prices will be heading higher in almost every metro area it tracks. Medford, Ore., is expected to gain 9.7% in the 12 months through September, the highest of any city. Other big gainers are expected to be Santa Fe, N.M., up 8.1%, Billings, Mont., 5.5% and Syracuse, N.Y., 5%.

Fiserv expects Miami home prices to sustain a 10.7% loss over the same period, the largest drop of any market. Stiff said a steady stream of foreclosures will keep prices soft in the area during that time.

Related: Zombie foreclosures: Debts that won't die

While Stiff said home price gains will be similar to those experienced back in 1997, he noted the similarities stopped there. Currently, millions of homes are either in foreclosure or on the verge of it.

Otherwise, there are many positive trends in today's market, he said. Prices are extremely affordable and mortgage rates are at or near historic lows. Overall, Fiserv Case-Shiller expects stronger demand for housing, and the sector should, once again, have a positive impact on the economy.

 

By Les Christie

Home shopping: Should you buy new?

By Amanda Gengler

A newly-constructed home is likely to be priced 10% to 15% higher than an existing one.

 

(Money Magazine)

It's official: After years of little activity, homebuilders are dusting off their jackhammers.

 

Last year housing permits hit their highest level since 2008, according to the Census Bureau, and new-home sales grew 20% from the prior year.

"Builders are more optimistic than they have been for several years," says Patrick Newport, an economist at IHS Global Insight.

An untouched abode offers advantages, of course, such as a sleek modern layout and few repairs. Buying an existing home, however, may allow you to seal the deal faster and can offer better short-term price appreciation.

These head-to-head comparisons can help you decide which choice better fits your priorities.

SALES PRICE

Winner: Draw

All else being equal, new structures typically command 10% to 15% premiums over similar existing places. You're unlikely to be making an equal comparison, however.

"In most of the country the lots in the best locations are already gone," says David Brown, a Dallas-based housing consultant for Metrostudy. The newest homes are often built farther from centrally located areas and may have smaller yards than their older counterparts, so they can wind up costing less.

 

What you won't find in either place is the lavish incentives tossed to buyers during the bust; those have largely disappeared, says Brown.

 

 

When you're visiting prospective homes, check the numbers on both the lot size and the layout.

A spacious existing home that's overflowing with the current owners' stuff can look cramped, whereas builders use lots of tricks, such as putting in full beds instead of kings or queens and removing interior doors, to make a new home's space seem larger than it really is.

SPEED OF TRANSACTION

Winner: Existing

Most builders today are selling new homes from models, says Jody Kahn of John Burns Real Estate Consulting in Portsmouth, N.H. Once you agree to buy, the actual construction begins.

The upside: There are still lots of ways to personalize the home, such as adding extra storage or creating an office. But the finished product probably won't be ready for six to nine months, which can be tough for those who need to move in soon.

Timing the purchase is also a challenge when you're looking at a waiting period.

 

List your current pad when you agree to the new home and you risk selling too early; wait until your moving date nears and you could be stuck covering two mortgages until you find a buyer and close the deal, says Michael Corbett, author of Before You Buy.

Ask an agent how fast homes in your area are selling and, if necessary, discuss strategies to get yours sold more quickly.

COST OF OWNERSHIP

Winner: New

After a few decades, roofs get leaky and boilers go bust. You'll spend an average of $18,000 on a new roof, according to Remodeling magazine, and $3,000 for a furnace.

Related: Home repairs: Which jobs come first?

New homes also carry lower utility bills. Energy use per house has fallen over the past decade in part thanks to changes to building energy codes, which call for more insulation and tighter sealing, and should fall further in new homes as more states adopt the latest 2012 codes.

"New construction on average is 30% to 40% more efficient than existing homes," says Indiana energy consultant John Milligan.

CHANCE FOR NEAR-TERM GAINS

Winner: Existing

While handy homeowners can reap the benefits of sweat equity, a new home offers very little room for improvements and is likely to sell for about the same price as others around it.

"New homes are for the most part based on a set of conforming architectural styles," says Corbett.

Prefer new? It can pay to buy into a development early, since builders usually raise prices as construction progresses (particularly if the homes prove popular). The risk is that there's no guarantee how the neighborhood will turn out.

Ask the builder how many homes in the development are under contract and how many are being bought by investors rather than primary buyers.

Says Corbett: "Empty lots, empty promises."

The good ones are Going fast!

This Chart illustrates that from 3/16/13- 3/22/13 Eagle river had 20 new listings and pended 21 homes. This shows Eagle River's inventory is being pended faster than homes are coming on the market.  Indeed, the good ones are Going Fast! So call us quick, we can help you find that dream home you’ve always wanted.

 

 

 

Click on the chart to see the data better.

 

We also have vacant lots available.

Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

See our Open House on this lovely home in Eagle River at 1-4pm tomorrow, 3/23, Sat

You are invited to our open house on March 23 at

10531 Chatanika Loop, Eagle River, AK 99577. Please bring your buyers and friends. It will be hosted by Victoria Brink of Keller Williams. You may reach her at 907-351-9434 for more details. See you there!!!

 

See our Open House on this lovely home in Eagle River at 1-4pm tomorrow, 3/23, Sat

 

Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

Don't get burned by these home remodeling mistakes

Before you start a remodel, learn about the common mistakes that cost homeowners.

 

By Leslie Barrie | Yahoo! Homes

Planning to tackle some home remodeling projects? Before you get out your tool belt, you may want to do some prep work.

Why? Because doing your pre-project homework will help you avoid any slip-ups down the line, says Aaron Gordon, a licensed contractor in San Francisco, Calif., and owner of Aaron Gordon Construction, Inc.

"Rushing a remodeling project before you have thought through all the details is one of the biggest renovation mistakes you can make as a homeowner," Gordon says. What kind of mistakes are we talking about? Anything from higher costs to project delays, notes Gordon.

Worried you could be a little underprepared for your big remodeling project? Keep reading to learn how to avoid these six remodeling mistakes, so your home improvement project can run smoothly.

Mistake #1: Not Getting a Permit

Sure, "going rogue" and building without a permit may save you money up front, but most likely it will end up turning into a big mistake down the line.

"If you don't build to code, you'll end up stuck with fees and fines (numbers vary, depending on the city, but could be hundreds more than the cost of the permit), and you'll most likely have to redo it if you're found out by a city home inspector," says Gordon.

Not only that, but if you add on another room to your house and don't get a permit, it can't be factored-in as part of your home's square footage, adds Gordon. For example, if the additional bedroom is 1000 feet, that's 1000 feet that the appraiser may not include in the total square footage, which means you'll be losing money on your home's total value when you try to sell.

The bottom line is you should absolutely talk to your city's Buildings Office or your contractor about any permits you may need before starting a project.

Mistake #2: Buying Cheap Cabinets

We've all heard the phrase "It's too good to be true." Well, it couldn't be more applicable to getting a great "deal" on kitchen cabinets.

"Customers have a tendency to buy cheaper cabinets, which can make it harder for the contractor to install," says Gordon. Cheap cabinets can be flimsy and difficult to secure in place.

And poor quality cabinets can also be a time-drain, says Gordon says. Buying lower-end products means you'll be spending more time at the hardware store returning them, trying different ones, taking them back again - you get the idea.

Want to avoid the headache? Talk to your contractor about cabinet selection before you go on a "deal hunt" - or just let your contractor do the shopping for you.

Mistake #3: Not Hiring a Contractor for Big Jobs

Re-doing your kitchen? Overhauling your bathroom? Exciting times! But if you don't hire a general contractor for big projects like these, your life could become a coordination nightmare.

"Unless you have a background managing subcontractors, a lot could go wrong," says Gordon. Subcontractors are the people hired by the general contractor to perform a certain job, be it plumbing, cabinet instillation, or tile work. The general contractor is the one that runs the show - and for good reason.

Why is it so important to have a general contractor? First, the subcontractors often don't talk with each other, so without a general contractor, there's going to be a major lack of communication, and the project won't run smoothly, says Gordon. For example, the kitchen plumbing needs to be fixed before the new backsplash is put in. But if they don't know that (and neither do you), the tile worker may show up to do the job before the plumber.

Additionally, there's no way of determining a fair price for a subcontractor, unless you have a contractor that has your back. Without one, you could end up paying way too much for the job.

Mistake #4: Measuring Inaccurately

Measuring a square room? Not too difficult. But if you're measuring a whole kitchen, from the cabinets to the backsplash, there's a lot of room for error.

If you're an inch off measuring your refrigerator space, and then you buy the wrong refrigerator size, you'll delay the entire kitchen project waiting for returns and deliveries. But a contractor knows better, says Gordon: "As a contractor, you try to be there before a customer makes those measuring mistakes."

Even measuring something as seemingly simple as a window frame can be quite difficult due to the ridges and edges. But if you want to give it a shot anyway, many websites offer thorough how-to-measuring instructions. Another option to help avoid this mistake? Consult the pros.

Mistake #5: Hiring the Wrong Contractor

In 2011, the Better Business Bureau (BBB), an organization that works to create an ethical marketplace, received over 6,000 complaints against general contractors, an 11 percent increase from the previous year, according to the article "Hiring a Home Contractor - Do you Know the Red Flags?" To make sure you don't become another statistic, it's important to do a little research first.

It's also important to make sure the contractor is licensed, says Gordon. The BBB advises homeowners to not only get the name of the insurance carrier but also confirm with the carrier that the contractor has coverage.

But your research certainly should not stop there. Gordon advises reading reviews about potential contractors online and then asking contractors for references. When you speak with references, ask if you can see the finished project or have the contractor take you there, so you can decide if you like the work.

And if you like what you see? Well, it's time to relax because you've likely found a contractor who can take all of the guesswork out of your home remodel.

Price just got reduced further on this home in Palmer

Price just got reduced further on this home in Palmer

Now, you can have this entire property for only $140,000. So don’t miss out on this great opportunity, call us.

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Visit this link to know more about the specs.

Address: 1200 S Badger Road,

• Palmer, AK 99645

• Style: Split Entry,Wood Frame
• Bedrooms: 3
• Total Baths: 2
• Year Built: 1982
• Sq. Feet: 1728
• Lot Size: 0.99
• View: Mountains, Unobstructed

 

Ready for super quick closing. Well & Septic inspection, As-Built Survey, Plumbing & Heating inspections all completed. Medical problems require Sellers to leave the state. Priced for a quick sale, and sold ''as-is'; seller is not in a position financially to make repairs. Includes a detached 260 square feet shop that is heated with Propane. Early occupancy is possible to qualified buyers.

 

You can see a great view of the mountains.

 

With an easy-access tool shed for your storage needs.

 

 

Price just got reduced further on this home in Palmer

 

We also have vacant lots available.

Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

10 Fastest-Recovering Housing Markets

1. Arizona

Appreciation in home prices: 13.8 percent
Souce: CoreLogic. All data is based on single-family home sales between June 2011 and June 2012 and includes distressed sales.

Photo: iStockphoto

 

2. Idaho

Appreciation in home prices: 10.4 percent

Photo: iStockphoto

 

3. South Dakota

Appreciation in home prices: 10.1 percent

Photo: iStockphoto

4. Utah

Appreciation in home prices: 8.3 percent

Photo: Reuters/Jim Urquhart

5. Wyoming

Appreciation in home prices: 7.7 percent

Photo: iStockphoto

 

6. North Dakota

Appreciation in home prices: 6.3 percent

Photo: Wikimedia Commons

 

7. Colorado

Appreciation in home prices: 6.2 percent

Photo: Wikimedia Commons

 

8. Michigan

Appreciation in home prices: 5.9 percent

Photo: REuters/Rebecca Cook

 

 

9. Mississippi

Appreciation in home prices: 5.3 percent

Photo: iStockphoto

 

10. Alaska

Appreciation in home prices: 5.2 percent

Photo: Wikimedia Commons

 

From The FiscalTIMES

Condominium with a great view in Eagle River

Condominium with a great view in Eagle River

New Listing

Amazing view of Sleeping Lady can be seen from this condo's deck. The condo is located on the desirable top floor and it is within walking distance of ER Town Square, restaurants, grocery store, post office, and much more. Upgrades and updates include the laminate flooring, master shower, crown molding, baseboard, new toilets, visit this link for more details.

 

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

• Address: 11720 BUSINESS Boulevard
• City: Eagle River
• State: AK
• Zip: 99577
• Area: 90 - Eagle River

• Price: $150,000

• Bedrooms: 2
• Total Baths: 2
• Year Built: 1985
• Sq. Feet: 805
• Lot Size: 0.00
• View: Mountains
• Garage: Heated, Tuck Under
• Parking: 2 space(s)
• Heat: Forced Air

Condominium with a great view in Eagle River

Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

Open house at 7110 W Borigo Drive, Wasilla, AK

Price just got reduced further to $239,900

You are cordially invited to our Open House on

on Friday, May 31st from 4-7pm. Bring your buyers and friends!!!

It will be hosted by Clarissa with Christina Gamez and Associates at Keller Williams Realty Alaska Group.

You may reach her at: 907-441-0119

 

 

“Swing by on Friday, May 31st from 4-7pm.”

Property Information:

• Style: Two-Story Traditional
• Bedrooms: 3
• Total Baths: 2.5
• Year Built: 2004
• Sq. Feet: 1903
• Lot Size: 0.50
• Garage: Attached

Visit: http://lesbaileyteam.com/listing/mlsid/3/propertyid/12-14019/ 

for more details and specs about this property or call us at 907-694-1234

 

 

Come and enjoy this lovely two story home that is located in the Settlers Bay subdivision.

The inside is in immaculate condition with a vaulted ceiling and an amazing master bedroom,

with a large walk-in closet

and spa style bathroom.

 

This home was built with quality extras and has an incredible floor plan. This is a MUST SEE floor plan!!!

 

only at the 7110 W Borigo Drive, Wasilla, AK open house.

Own a Home? Check Out These 8 Tax Breaks

By Mary Boone | Zillow

 

Taxes are due April 15, which means it’s time to start gathering your W2s, 1099s, child care receipts and bank statements.

But before you sit down with your accountant, it’s important for you to know that merely owning a home could mean you qualify for tax breaks. In most cases, you need to itemize your taxes in order to take advantage of these deductions. Yes, it makes the tax-filing process seem impenetrable, but the benefits may outweigh the complications.

Here are a few of the tax breaks you’ll want to investigate:

Mortgage interest paid at settlement

Take a look at your closing statement; one item that’s generally listed there is home mortgage interest On a mortgage of up to $1 million, you can deduct the interest that you pay at settlement if you itemize your deductions on Schedule A (Form 1040). This amount should be included in the mortgage interest statement provided by your lender.

Points

Did you pay points in order to obtain your home mortgage? These fees are included on the income tax deductions list and can be deducted as long as they are associated with the purchase of a home. If you refinanced your home, these points are still deductible, but it must be done over the life of the mortgage.

Property taxes

As long as they are based on the assessed value of the real property, you can deduct your state and local property taxes. However, if your money is being held in escrow for the purpose of paying property taxes, you cannot claim this deduction until the money is actually taken out of escrow and paid. If you do this, check your Form 1098 for the amount you may deduct. Be aware that if you receive a partial refund of your property tax, the amount of the deduction you can claim will be reduced.

Selling costs

If you sold a home in the past year, you may be able to reduce your income tax by the amount of your selling costs. These costs can include things such as repairs, title insurance, advertising expenses and broker’s fees. The IRS only allows the deduction of repair costs associated with selling if the repairs were made within 90 days of the sale. It’s also crucial that the repairs were made with the intent of improving your home’s marketability. Selling costs are deducted from your gain on the sale.

Home office

If you use a portion of your home exclusively for the purpose of an office for your small business, you may be able to claim a deduction on your taxes for costs related to insurance, repairs and depreciation. You may only claim this deduction if the space within your home is used exclusively and regularly as either your principal place of business or a place where you meet and deal with customers or patients. You may also be able to take advantage of this deduction if a portion of your home routinely is used for storing items (product samples, inventory, etc.) used in your business.

In tax year 2010 (the most recent year for which figures are available) nearly 3.4 million taxpayers claimed the home office deduction.

Mortgage insurance premiums

You may be able to deduct the premiums paid for private mortgage insurance for your principal residence and for a non-rental second home.

The deduction begins to phase out once your adjusted gross income reaches $100,000 ($50,000 for married filing separately). In general, you can deduct the premiums paid for the current tax year only. A qualified tax adviser can provide information about rules for mortgage insurance provided by the Federal Housing Administration, Department of Veterans Affairs and Rural Housing Service.

Home improvement loan interest

If you’ve taken out a loan to make improvements on your home, you may be able to deduct the interest on this loan. Qualifying loans are those taken out to add “capital improvements” to your home, meaning the improvement must increase your home’s value, adapt it to new uses or extend its life. New carpeting or painting are not considered capital improvements, while adding a garage, installing a water heater or building a deck are all examples of capital improvements.

Construction loan interest

If you take out a construction loan to build a home, you may qualify to deduct the interest. The IRS only allows a deduction for mortgage interest if the loan relates to a “qualified” home, which means it must either be your principal residence or a vacation home that you will use for personal purposes. You can only use this deduction for the first 24 months of the loan, even if the actual construction takes longer.

Tax codes can be confusing. You may want to consult the IRS website for information concerning deductions and credits. Additionally, consider meeting with a professional to ensure you’re not missing any deductions for which you’re eligible.

An invite: Open house on this stunning home in Wasilla, this Sat, March 16th, 1-4pm

 

You are invited to our open house on March 16, at 2010 S Paddock Drive, Wasilla. The price tag for this property has been reduced to $362,000, so what are you waiting for? Bring your buyers and friends. It will be hosted by Victoria Brink with Keller Williams. You may reach her at 907-351-9434 for more details. See you there!!!

 

Visit this link to learn more.

An invite: Open house on this stunning home in Wasilla, this Sat, March 16th, 1-4pm

 

Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com

2870 S Jane Circle

2870 S Jane Circle

Price just reduced to $709,000

Phone#: 907-694-1234

• Bedrooms: 5
• Total Baths: 5.5
• Year Built: 2004
• Sq. Feet: 4625
• Lot Size: 3.37
• View: Mountains, Unobstructed

Visit this link for more pictures and specifications.

http://lesbaileyteam.com/listing/mlsid/3/propertyid/12-14521/

This spectacular home is a MUST SEE!!! This dream home has a so many upgrades they can't all be listed.

 

There is a Movie Theater,

 

a Private Office, intercom/stereo system, bamboo flooring,

custom cabinets,

 

wide outdoor entertaining area with fire pit,

a bathroom attached to every bedroom,

a relaxing mother-in-law suite,

a huge garage that can fit over 8 cars and the list goes on. You have to see it to appreciate this incredible home!

2870 S Jane Circle, Wasilla, AK.

We also have vacant lots available.

 

Brought to you by:

Les Bailey & Associates Real Estate Team

Keller Williams Alaska Group

Direct: 907-694-1234

Toll Free: 1-800-784-2912

www.LesBaileyAndAssociates.com