Spring is coming, so it's time to start thinking about whether it's the right time to buy a home. Review these handy tips and contact me anytime for more information.
Are you a Texas homebuyer? If so, read on...
As a recent home buyer in Texas, a homestead exemption can help you save on taxes on your home. An exemption removes part of the value of your property from taxation and lowers your taxes. For example, if your home is valued at $100,000 and you qualify for a $20,000 exemption, you pay taxes on your home as if it was worth only $80,000.An additional benefit of the general homestead exemption, especially in an appreciating housing market, is the homestead cap, or limitation on increases in appraised value. The cap applies to your homestead beginning in the second year you have a homestead exemption.If homes are appreciating at more than 10% per year, the cap can provide substantial tax savings.Instructions, forms, and deadlines related to homestead exemptions for homes in Greater Houston may be found at the following locations:
The tax bill just passed by Congress has three provisions that may affect your mortgage:
- There is now a $10,000 deduction limit on property, state, and local income taxes.
- The mortgage interest deduction drops to $750,000 of debt on your primary residence, but it is still $1million for homes purchased before December 15, 2017.
- Interest paid on vacation home loans is no longer deductible.
Be sure to consult your tax advisor for more details.
The Fed announced a 0.25% hike to its benchmark interest rate, the third time this year. The hike signals confidence that the US economy remains on solid footing.
Experts predict that 30 year mortgages won't see much change, but ARMs and HELOCs will move up.
Great news! The 2018 conforming loan limits have been announced. It is $453,100 for most areas (nearly all of Texas) and up to $679,650 for high-cost areas. The changes are effective immediately, so you can take advantage of it today. Contact me anytime for questions.