On Oct. 1, the size of mortgages eligible for purchase by Fannie Mae and Freddie Mac will shrink. That isn’t necessarily a big deal in most parts of the country; the new lower limit of $625,500 — down from today’s $729,750 — still is big enough to cover most homes in almost all markets in the United States.
Aside from getting a piece of the American dream, one of the reasons people ostensibly buy homes in the U.S. is for a nice tax break. About 35 million households claimed the mortgage interest deduction in 2009, according to a recent report from the Joint Committee on Taxation.
On Wednesday, we looked at mortgage debt and the home mortgage interest deduction, based on new data released in a Joint Committee on Taxation report. Today, we’ll look at student loans and their corresponding interest deduction.
Beyond the double-dip U.S. housing recession, is there a future for the American home market? What I see emerging as growth magnets are established city enclaves and “new urbanist” communities that resemble old-style neighborhoods without the sprawl. They are close to public transportation, walkable and loaded with culture and amenities. They personify the new American dream.
How much are you borrowing and how much will it cost to pay it back? Those are the key questions that a mortgage disclosure form should answer, and the Consumer Financial Protection Bureau is trying to develop one that will will give it to consumers straight.
Spring is home buying season, so the common wisdom says. In the winter, fewer homes go on the market and fewer buyers trudge out in chilly temperatures to look. Summer is filled with vacations, keeping would-be buyers away. And the fall, well for families, is the start of school and not the time to make a big move. That makes spring the sweet spot for finding a home and closing on it before summer vacation or the new school year.
Reverse mortgage ads often portray contented silver-haired couples enjoying the comfort of home, confident that their decision to tap home equity will bring lifelong financial security.