This has been updated to include new information about refinancing.
Private Mortgage Insurance, or PMI, is
“insurance that protects a lender or investor against loss if a borrower stops making mortgage payments. It makes it possible for you to buy a house with as little as a three percent down payment or less for qualified borrowers, helping you buy a home sooner than you otherwise could. “ PrivateMI.com
Although it protects the lender, the borrower actually pays for it. And until recently, PMI was not a tax deductible item for primary residences.
PMI is now tax deductible for some. Here are the requirements:
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Borrower must have purchased or refinanced* the home using a loan backed by PMI in 2007. For the next three years, ending in 2010, borrowers who pay PMI will also be able to deduct it as long as they meet the other restrictions.
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Only borrowers with an adjusted gross income of $100,000 may deduct 100% of the premium. Families earning up to $109,000 may deduction a portion of the premium.
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Premiums are deductible for the borrower’s primary residence or for a second home. Owners of rental property are already allowed to deduct PMI.
The IRS publishes a 16-page guide to “explain” this further.
*For more about how refinanced mortgages are affected, visit SmartMoney.com for their article.
Contact your tax advisor for more information.
February 27, 2008
Here are the headlines in housing for Hartford County in January 2008.
Median Sales Price Drops
From $250,000 in December 2007 to $245,000 in January 2008
Average Days on Market Rises
From 63 in December 2007 to 78 in January 2008
Number of Closed Sales Down
From 728 in December 2007 to 479 in January 2008
Total Inventory or Number of Houses on the Market Rises
From 4489 in December 2007 to 4838 in January 2008
February 25, 2008
If your waistline has been expanding, it may be because of where you live.
In a recent article in the New York Times, Allison Arieff writes:
“A report by the Ontario College of Family Physicians on public health as it relates to development patterns suggests that the greater the density, the fewer the fatalities per 1,000 people, as calculated over 83 United States regions covering two-thirds of the total population.
Contrary to popular belief, the pace and proximity of urban living can actually contribute to more healthful lifestyles, while lower-density communities tend to have a higher incidence of cardiovascular and lung diseases, including asthma in children, as well as cancer, diabetes, obesity, traffic injuries and deaths; these are exacerbated by an increase in air pollution, gridlock and traffic accidents, and by a lack of physical activity. The study recommended that people seek out cities and towns with reliable public transportation systems, bicycle lanes and pedestrian paths, ones that have schools, businesses and stores within walking distance.”
Some other benefits to higher density living can be seen here - scroll over the pictures to see how higher density living can reduce your transportation costs and increase access to businesses.
Higher Density Towns/Developments
Where do you find such a lifestyle in Hartford County? (more…)
February 21, 2008
South Windsor’s town motto should read:
“Give me your 55 and older, with no school age children living at home, who want to live on a cul-de-sac on a half-acre lot.”
In a recent article in the Hartford Courant, Town Manager Matthew Galligan reportedly said the following about why the town purchased over 40 acres of land for $2.8 Million to keep as open space:
“Galligan said purchasing the land is a good financial move because it will keep the land from being developed into homes, which would add children to the school system.
If 40 homes were built with two children per home, there’s a potential for $800,000 a year in school costs, Galligan said.” - Hartford Courant
Doesn’t that make you feel welcome?
Town leaders across Connecticut are strapped to keep costs under control and their target is children - keeping them out by limiting development that would attract families with children.
This attitude is disturbing but all too familiar.
Connecticut is the home of NIMBY, or Not in My Backyard. And Not in My Backyard is not a welcoming philosophy.
I found this old article in the New York Times about NIMBY in Connecticut. (more…)
February 20, 2008
I happened to take this picture during a showing I did this week. While I can’t say for sure the wrap on the pipes is asbestos (you need an actual test), it probably is. Asbestos is relatively common in older homes and can be found in pipe insulation, roofing materials, shingles, and floor tiles.
The general rule is to leave asbestos alone - don’t take it down yourself because not only is it a health hazard when the particles are disturbed and become airborne but you can’t dump it anywhere without paying for its disposal.
You can also have it wrapped if the asbestos is deterioriating - this is far less expensove than removal. This wrap actually looks to be in pretty good shape. If this were located in a basement that was finished or could be finished, I would have it wrapped or removed.
For more info on asbestos, see these related posts:
Home Inspection Options in Real Estate Purchase & Sales Contract
How Much Does It Cost? A guide to some common and not-so-common repairs
Home Buying 101 - Step 10: Get A Home Inspection
February 16, 2008
It’s Too Hard to See!
Do I really need to say more? It’s not that your pictures are bad, it’s not that you offer breadcrumbs for a commission, or that the disclosures mention toxic waste in the basement. The number one reason your house won’t get shown is that I have to pass through a gauntlet to see it. With inventory so high in many areas, don’t make your house the one I pass by. (more…)
February 15, 2008
