Mortgage Insurance Tax Deductibility Extended Through 2011

The President has signed the bill extending Mortgage Insurance tax deductibility through December 31, 2011. This makes it a great time to use MI to buy a home sooner and enjoy predictable payments, while benefiting by deducting the premiums from your income taxes. And MI can be canceled once the home buyer builds enough equity.

Details on Tax Deductibility for MI Remain Unchanged

• The home purchase or refinance loan must close between January 1, 2007 and December 31, 2011;
• Household income must be at or below $100,000 for a full deduction of premium;
• The premium deduction is reduced 10% for each $1,000 of income over $100,000;
• The premium deduction is prorated in the first year based on the month the loan closes;
• Applies to primary residence and one other residence purchased for personal use by the taxpayer;

Monthly, annual, and single MI premiums are eligible. Financed premium deductions should be taken over a seven year period.

Want to increase the size of your 2010 tax deductions?

Want to increase the size of your 2010 tax deductions? Consider making your upcoming January 2011 mortgage payment while the calendar still reads 2010. Use the Tax Code to your advantage…

An "early" payment increases your 2010 tax deductions because of how mortgage interest works within federal tax code. Unlike rent which is paid in advance at the beginning of a month, interest on a mortgage is always due at the end of the month -- after the money's already been borrowed from the bank.

When you study a mortgage statement, you'll notice that it's actually a bill for the interest that built up during the prior 30 days. January 2011's mortgage statement, therefore, is a bill for December 2010's accrued interest.

For a lot of homeowners, that mortgage interest is tax-deductible in the year in which it was paid. So, to boost your 2010 mortgage interest tax deductions, simply pay your January 2011 mortgage statement before the New Year.

Simple, right? Well…there are caveats of timing your mortgage payment…

Before you send that January mortgage payment to your servicer early, it's important to remember that you're dealing with federal tax code. There's going to be caveats, exceptions and special cases that impact your eligibility so be sure to review your individual situation with an accountant before moving forward.

The first gotcha of which to be aware is that is not every mortgage is mortgage interest tax deduction-eligible. The IRS does a pretty good job of outlining mortgage eligibility via the flowchart located at http://www.irs.gov/publications/p936/ar02.html. You can follow along at-home to make sure your loan qualifies.

The second gotcha is the Alternative Minimum Tax (AMT). Because of AMT, some filers will find their "normal" tax deductions pared -- including some related to the mortgage. This may reduces the benefits of making January's mortgage payment in December.

In the eyes of the IRS, you're allowed to make January's mortgage payment in December because the payment is actually due. If you try to pay February in advance as well, you won't have much to gain. This is because paying February before the mortgage interest has accrued is considered to be a "prepayment" and prepaid mortgage interest is rarely tax-deductible.

There are 10 Days Left In 2010

If you're planning to make your January payment early, don't cut it close. It's a popular vacation time and servicers are short-staffed. Send your payment prior to Christmas, if possible. You want to give your lender ample time to receive and process paperwork.

And, again, talk to your accountant first. The "pay early" plan could be a wasted effort, ultimately, depending on your individual taxpayer profile.

The complete IRS guidance on home mortgage interest tax deductions is available online at http://www.irs.gov/publications/p936/ar02.html.

Home Sale Prices On The Rise!

The S&P Case-Shiller Index for April, released Tuesday, showed both month-to-month and year-over-year increases in seasonally adjusted metro Atlanta home sale prices. The increase, nearly 1 percent from March, came after the index had dipped to its lowest level since November 2000. The year-over-year increase was slight, with a gain of a quarter percent over April 2009. Nationally, the 20-city Case-Shiller Index showed seasonally adjusted prices up one-half percent in April from March, while up 4 percent from April 2009.

Is this good news?

Yes! The quarter percent increase is the first positive year-over-year movement the Atlanta index has seen since September 2007. Even if the index stays flat month-to-month in May, the annual improvement will follow into next month’s data.

Source: The Atlanta Journal-Constitution

Change in FANNIE MAE guidelines: Underwriting Borrowers with a Prior Foreclosure

Fannie Mae has issued Announcement SEL-2010-08, Underwriting Borrowers with a Prior Foreclosure, to modify the waiting period that must elapse before a borrower is eligible for a new mortgage loan after a foreclosure. A seven-year waiting period after a prior foreclosure will apply for all borrowers, unless the foreclosure was the result of documented extenuating circumstances, which requires a three-year waiting period with additional eligibility requirements.

Important Lending Changes!

Beginning June 1, 2010, just before settlement, Fannie Mae will be running last minute credit report checks to ensure borrower's credit has not changed since loan application. The purpose is to find out whether the borrower has accrued or shopped for new debt.

Many homebuyers get excited once they have an accepted contract on a home, and realize they will need new furniture and decorations for the house. What some do not realize is that they should not open an account at a store or make these large purchases because they effect their debt-to-income ratios for their loan.

With these new regulations, if a Fannie Mae homebuyer does this, they risk a delay in settlement as the lender does more research and reviews the file further, creating problems for themselves and the sellers of the house they are buying.

The Washington Post reported on this new policy, and made a few notable points:

"Fannie's 'loan quality initiative' will require lenders not only to pull two credit reports for each mortgage transaction but to perform additional verifications of borrower occupancy plans for the property, Social Security numbers and Individual Taxpayer Identification Numbers."

Essentially, to ensure you get their dream home and are able to close on the house, make sure you DO NOT open or apply for ANY lines of credit from the time you make loan application to closing, or make any large purchases which deplete your savings or increase your credit card balance. That is the only safe route!

- Owen Jennings, Covenant Mortgage

I took these 3 homes from Just Listed to Under Contract in under 30 days!

Tough market? Says who! I took all three of these homes from listing to under contract in less than 30 days! Thinking of selling your home? Let me show you how I did it!

Lovely mid-century modern ranch on a huge lot in an amazing Decatur location steps from the square!

Offered at $485,000

Under Contract in 23 days with a second full-price backup offer!

Beautiful townhome in hot Old Fourth Ward!

Offered at $240,000

Under Contract in 16 days!

Large newer construction home in Lithonia!

Offered at $67,000

Under Contract in 17 days with a full price offer!

Proud to be a RE/MAX Agent!

RE/MAX agents once again outperformed the competition in the 2010 U.S. REAL Trends 500survey. RE/MAX had 122 brokerages listed compared with Keller Williams (103), Coldwell Banker (91), Century 21 (58), Prudential (38) and ERA (20). RE/MAX agents averaged 14.4 transaction sides, far more than our competitors. We're doing more to help buyers and sellers!

RE/MAX brokerages held 122 spots, or 24%, on the list of 500 positions, more than any other national brand. RE/MAX also led the rankings in total transaction sides and sales volume, according to the report's top 500 rankings based on transaction sides.

In the participating offices, RE/MAX agents averaged 14.36 transaction sides, higher than the next closest competitor.

Individual RE/MAX agents averaged $2.98 million in sales volume – far more than any other competitor.

• RE/MAX leads the competition by all measures: number of brokerages, transaction sides, agent productivity and sales volume.
• Based on transaction sides, RE/MAX brokerages hold 24% of all positions or 122 of the top 500 brokerages.
• RE/MAX brokerages had half as many agents as Keller Williams but closed 20% more transaction sides.
• RE/MAX Sales Associates averaged 14.4 transaction sides, 151% greater than Keller Williams agents.
• On the list ranked by closed transaction sides, RE/MAX Sales Associates averaged $2.9 million in sales volume, 157% greater than Keller Williams agents.
• RE/MAX Sales Associates averaged 45% more transaction sides than agents with Coldwell Banker.
• On the list ranked by closed transaction sides, RE/MAX brokerages’ total sales volume was 36% higher than Coldwell Banker brokerages.
• RE/MAX Sales Associates averaged more than twice as many transaction sides as Century 21 agents.
• Among all brokerages reporting agent counts on the Top 500 transaction‐sides list, RE/MAX had the highest sales volume – 149% greater than Century 21.

The REAL Trends 500 Report identifies the largest residential real estate firms in the U.S. based on closed transaction sides. The 2010 report looks at 2009. Participation is voluntary. REAL Trends requires verification of all data. The survey’s agent‐count data were used to compute averages per agent, but that breakdown was not in the final REAL Trends 500 Report.

Home Purchase Still Possible with a Foreclosure on Your Record

With the record numbers of foreclosures that have happened (and continue to happen), there are thousands of people who do not think home ownership is an option for them again anytime soon. The reason that many people who have a foreclosure on their record do not become repeat home buyers is because Fannie Mae guidelines have stated that you must wait at least 4 years before being able to qualify for a mortgage after foreclosure and 2 years after short selling your home.

But that all changed recently with an announcement by Fannie Mae that they would allow someone who had a foreclosure to qualify for a mortgage after only 2 years as long as they have put down 20 percent as a down payment. The change will go into effect for any loan application taken after June 30, 2010 and will be updated in the Fannie Mae desktop underwriter software.

Two years with 20% down. So to anyone who is currently going through foreclosure, save your money for the down payment on your next house, the American Dream is still within reach!

Featured in Jezebel Magazine's 2010 "Who's Who of Atlanta Realtors" Issue!

My business partner Andrew & I were honored to be featured in Jezebel Magazine's 2010 "Who's Who of Atlanta Real Estate Professionals" issue! This prestigious Atlanta magazine only chose 8 agents/teams throughout the Metro Atlanta area to feature and we were thrilled to be one of them. You can find the feature in the April issue (which is also their annual "Best Of Atlanta" issue), but here is a sneak peek! Because it is also the Best Of Atlanta issue, the original article was cut down for space reasons. But never fear, you can read the full one below!

Atlanta’s “A Team” is comprised of Andrew Malone and Alix Nadi, two of Atlanta’s most successful young Realtors. Andrew and Alix have known each other for over a decade and worked together for the past three years, growing an incredibly successful business which is based on building client relationships that extend past closing. Andrew actually sold Alix her first home in 2003, a process through which they became good friends, and Andrew approaching Alix to join his team in 2007.

Both natives of Atlanta, Andrew grew up in Dunwoody and is a Cum Laude graduate from Georgia State University with a degree in Finance and Marketing. He joined RE/MAX directly after college and grew a thriving business on his own, selling over 200 homes and becoming the Top Agent in the office 4 years running. Alix also grew up in Atlanta and graduated with honors from Georgia Tech with a degree in architecture, a field in which she worked for 5 years after college. In 2007 Andrew approached Alix about switching careers, and the rest, as they say, is history! Alix finds that her architecture background has been incredibly helpful in this business. Working as an architect and urban planner in the Atlanta area for the ten years prior to coming to RE/MAX gave her invaluable knowledge and a deep understanding of the Atlanta market, and she enjoys putting her experience in that field to work for her clients now.

Since the birth of the A-Team, Andrew and Alix’s hard work immediately paid off and they have earned Top Sales Team honors the past 3 years, building their business entirely on referrals. “When Andrew first approached me about joining him, I told him that if I had to be a ‘salesman’ I wasn’t interested,” says Alix. “He told me not to worry and shared the secret to his success: working by referral. Rather than following the traditional real estate model of cold calling, chasing expired listings, and trying to convert For Sale By Owners, we base our business on relationships. We count on the assumption that if we provide the very best service possible to our clients, they will happily refer us to their friends & family...and we create lasting relationships along the way!”

Andrew and Alix are true partners and balance and reinforce each other’s strengths. Although they both work throughout metro-Atlanta, Andrew typically specializes in the northern suburbs, while Alix’s expertise is the in-town neighborhoods. They each work both sides of the transaction, but Andrew tends to focus more on the listing side while Alix loves to work on the buying side – particularly with first time buyers! This diverse knowledge base allows them to provide unparalleled service to their clients, working tirelessly with an energy and enthusiasm for the job they do. “Our goal is help guide our clients through what can be an intimidating and confusing process with the least amount of stress possible. We strive to eliminate confusion in the home buying or selling process and devote ourselves to serving the needs of our clients before, during, and after each transaction,” says Andrew.

Their results speak for themselves: over 90% of their business comes via referral and they have maintained close contact with all their past clients. “Most of my clients have become good friends. That, to me, is success,” says Alix.

JUST LISTED! Huge 4/3.5 in Morningside, for sale or lease!

OFFERED FOR SALE FOR $700,000 OR LEASE FOR $3200/mo

FMLS#4045993, MLS#2848396

This large home is steps from Piedmont Park and in the fabulous Morningside Elementary School district! Due to the size and location, this home is ideal for a growing family or a group of young professionals.You will find gleaming hardwoods throughout the main floor and tons of natural light. The spacious kitchen has great cabinet and counter space, newer appliances, and is open to a lovely breakfast room with a bay window. The oversized dining room easily seats 12+, or use it as a pool room! The sunken living room has a gas fireplace and opens out to the back deck. The open, flowing floor plan is perfect for entertaining while lovely architectural details like arched doorways and custom trim add character.The huge master suite is on the main floor and boasts trey ceilings, a sitting area, large walk-in closet, and spa-like bath with marble tile, double vanities, whirlpool tub, and separate shower.Upstairs you will find two very good sized bedrooms which share an updated bath. In addition, there is an enormous bonus room with vaulted ceilings, fireplace, and plenty of space for an office and rec room!The fully finished daylight basement has a full apartment with kitchen. With both exterior and interior entry, this can be closed off as a separate unit if so desired. The apartment has a large bedroom, lovely bath, den/media room, office, game room, and storage.This home has an attached 2-car garage plus parking for 4 additional cars in the driveway, which is next to impossible to find in this neighborhood! Mature landscaping provides privacy from the street and the yard is very low-maintenance.This lovely home is in wonderful condition and the location truly cannot be beat. It is available to rent starting May 1st and is also available for purchase (contact agent for more details). Hurry, it won't last long at this price!!!

Click here for more info and photos!

JUST LISTED! Fabulous 4/3 in amazing Decatur location steps from the square!

OFFERED AT $485,000 - FMLS#4046017, MLS#2848424

This spacious mid-century modern ranch is located just steps from all the Decatur Square has to offer! Located on a huge corner lot adjacent to Adair Park, this 4 bedroom / 3 bath home has fabulous period details like the corner windows and original hardwoods.

The bright and airy kitchen was recently remodeled and boasts tile floor, white cabinets, tons of counter space, vaulted ceilings, and a large breakfast bar. There is a separate oversized breakfast room with tile floor, built-in cabinetry, and a wet bar. The huge living/dining room combo has plenty of room to have the entire family over for Thanksgiving!

There are three spacious bedrooms on the main floor and two baths with original vintage tile. The absolutely enormous family room boasts cathedral ceilings, a wall of built-ins, and one of the two original fireplaces in the home. A wall of glass doors opens to a lovely private patio that is perfect for entertaining.

Above the 2-car garage you will find a 1 bedroom, 1 bath apartment with full kitchen, gleaming hardwoods, vaulted ceilings, and tons of natural light. Rent this unit and help pay your mortgage!

Out back on the almost 1 acre lot is a beautiful in-ground pool and huge yard for the kids to play in! A separate pool house has a kitchenette, second laundry room, workshop and plenty of storage. This house has tons of space for your growing family!

Perhaps the best thing about this home is it's wonderful location. Located in the fabulous Oakhurst Elementary School district, you are literally steps from all the Decatur Square has to offer! Hurry, this wonderful home will not last long at this great price!

Click here for more information & photos!

Coming soon - Beautiful 3/2.5 new construction in Grant Park area!

Stunning new construction with all the upgrades! Home will be built to your specifications. Included in price is:

• 3 bedrooms, 2.5 baths
• Finished basement
• 2-car garage
• Gleaming hardwood floors
• Granite counters
• Stainless steel appliances
• Private, fenced backyard

Additional upgrades can be added. This home is located in the Grant Park area, minutes from downtown, Turner Field, and East Atlanta Village. Convenient to I-20 and 75/85. Offered at $200,000 or purchase the lot for $38,500 and build yourself!

Contact me for more information at 404-376-8644 or ANadi@remax.net

Just Listed! 3/2.5 in Lithonia - amazing deal at only $67,000!

Jump on this great deal while it lasts! Lovely 3 bedroom home in a quiet neighborhood convenient to I-20 and Stonecrest Mall. Formal living & dining rooms with hardwood floor. Fireside family room with gas fireplace & tile floors, open to breakfast area and kitchen - perfect for entertaining! Spacious kitchen with tile floors, stainless steel appliances, and large breakfast bar.

Upstairs you will find a huge master suite with trey ceilings and a large walk-in closet. Spa-like master bath boasts double vanities, garden tub, and separate shower. Both secondary bedrooms are a good size and have large closets.

Home sits on a nice, level lot with a private, wooded backyard. Large patio and attached 2-car garage complete this lovely, move-in ready home. And the price cannot be beat - $67,000! This home is perfect for a first-time buyer or an investor who wants to rent it out. There is already a wonderful, stable tenant in the home who would love to stay! Run, don't walk, to this amazing deal!!!

Contact me for more info: 404-376-8644 or ANadi@remax.net

Less Than 45 Days Until Homebuyer Tax Credit Expires!

If you have been considering purchasing a home, there is still time to qualify for the Homebuyer Tax Credit! Eligible buyers must be under contract by April 30th and closed by June 30th in order to qualify. To be eligible, you must either be a first time buyer ($8,000 credit) or a move-up buyer who has owned their current home for at least 5 years ($6,500 credit). With interest rates low and housing prices down, there has never been a better time to buy. Contact me today to take advantage of this amazing deal!

Fed Says Low Rates Will Continue

The Federal Reserve left its key interest rate near 0% once again Tuesday and said rates should stay this low for the foreseeable future.

Fed policymakers repeated their prediction that economic conditions are likely to result in "exceptionally low levels of the federal funds rate for an extended period." That promise of an easy-money policy has been in place since March 2009.

The so-called fed funds rate, a benchmark that determines the interest paid by consumers and businesses on a wide variety of loans, has been near 0% since December 2008, as the central bank worked to spur greater lending and economic activity.

- NEW YORK (CNNMoney.com)

Spring Forward!

Daylight Savings begins tonight! Don't forget to set your clocks ahead one hour.

Yes, we lose an hour of sleep, but we gain an hour of daylight!

Open House This Sunday, 2/21!

Join us for a joint Open House this Sunday!

951 Glenwood Avenue #2405

11am - 2pm

$164,900

This beautiful 3-level townhome has everything you could want: all the upgrades and a fabulous location! Located in Glenwood Green in the trendy in-town Ormewood Park neighborhood, this gated complex offers great amenities including a pool, clubhouse, and fitness center. All the shops, restaurants, and services of Glenwood Park are right across the street and both Grant Park & East Atlanta Village are less than a mile away.

Boasting gleaming hardwoods, corian counters, stained cabinets, and designer fixtures, the main floor is open and airy, ideal for entertaining. Upstairs you will find a spacious master suite with fabulous spa-like bath and custom walk-in closet! On the lower level is a nice sized bonus room which can be used as a second bedroom, office, or den!

In addition to an attached garage, this townhome offers something that is hard to find: great outdoor space - including a large deck, covered patio, and fenced backyard!

This unit is one of several that will be open this Sunday, so please stop by and check out your potential new home!

New FHA Guidelines Announced

January 20, 2010

The Federal Housing Administration (FHA), which is trying to bolster its depleted cash reserves, unveiled tighter underwriting guidelines Wednesday morning.

The guidelines include a hefty down payment for low FICO score borrowers and an increase in the upfront mortgage insurance premium to 225 basis points.

The 10% down payment is required for borrowers with FICOs of less than 580. The MIP will be increased in a few months from the current charge of 1.75 basis points. FHA will allow borrowers to continue financing the upfront MIP.

The agency also will pursue legislative authority to allow flexibility to bring the annual premium — current capped at 55 basis points — higher.

Also, seller concessions will be reduced to 3% from 6%. Scott Stern, who runs the Lenders One cooperative said, "On the whole, mortgage lenders will find the new rules painful but necessary. The problem is that for the past four years, FHA was an 'anything goes' environment."

He added that, "What makes this hard is with FHA hovering around 40% of new loan originations, even small rule changes echo through the housing market with a big impact."

Announced FHA Policy Changes:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending

• The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
• If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
• This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
• The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.

• New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
• This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
• This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%

• The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
• This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

Increase enforcement on FHA lenders

• Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
• Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
• Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
• Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process

For more information, click here.