Pressed for time? Here is a breakdown of some of real estate’s most interesting news…
A few posts back, I blogged about Congress’ desire to enact a potentially economy-stifling law requiring a 20% down payment. Thanks to your help, it now appears that we are winning the battle on the 20% down requirement for Qualified Residential Mortgages! The down payment for QRMs might now be as low as 5%. Good news!
Rumor has it that loan limits might be reduced from $729,750 to $625,500 as of 10/1/11. There is a possibility that we may get a one year extension, but don’t hold your breath.
In Mortgage Interest Deduction news, there’s be very little movement on changing it. This is a good sign because of the harm this could do to an already fragile economy. A home mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on the loan which is secured by their principal residence (or, sometimes, a second home). Most developed countries do not allow a deduction for interest on personal loans, so countries that allow a home mortgage interest deduction have created an exception to those rules. The Netherlands, Switzerland, and the United States each allow the deduction.
As always, if you need help buying or selling, call Cheryl! She’s your one-stop real estate shop.