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Michael Sikes Homes
Wednesday, February 24, 2016
How affordable are homes for first-time buyers?
How affordable are homes for first-time buyers? This infographic takes a look at the first-time homebuyer affordability data from the last quarter of 2015.
Are Mortgage Points Tax Deductible?
When you took out a mortgage to buy your home, did you pay points? You may be able to deduct that prepaid interest on your federal tax return — but only if you meet a long list of rules.
The points you paid when you signed a mortgage to buy your home may help cut your federal tax bill. With points, sometimes called loan origination points or discount points, you make an upfront payment to get a particular rate from the lender.
Since mortgage interest is deductible, your points may be, too.
If you itemize your deductions on Schedule A of IRS Form 1040, you may be able to deduct all your points in the year you pay them.
Some high-income taxpayers have their total itemized deductions limited, including points. You can read more about that in the instructions for Schedule A.
Lucky for you, the IRS doesn’t care whether you or the home sellers paid the points. Either way, those points are your deduction, not the sellers’.
Tip: Tax law treats home purchase mortgage points differently from refinance mortgage points. Refinance loan points get deducted over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct $100 per year on your Schedule A.
The Fine Print for Deducting Points
The IRS rules for deducting purchase mortgage points are straightforward, but lengthy. You must meet each of these seven tests to deduct the points in the year you pay them.
1. Your mortgage must be used to buy or build your primary residence, and the loan must be secured by that residence. Your primary home is the one you live in most of the time. As long as it has cooking equipment, a toilet, and you can sleep in it, your main residence can be a house, a trailer, or a boat.
Points paid on a second home have to be deducted over the life of your loan.
2. Paying points must be a customary business practice in your area. And the amount can’t exceed the percentage normally charged. If most people in your area pay one or two points, you can’t pay 10 points and then deduct them.
3. Your points have to be legitimate. You can’t have your lender label other things on your settlement statement, like appraisal fees, inspection fees, title fees, attorney fees, service fees, or property taxes as “points” and deduct them.
4. You have to use the cash method of accounting. That’s when you report your income to the IRS as it comes in and report your expenses when you pay them. Almost everybody uses this method for tax accounting.
5. You must pay the points directly. That is, you can’t have borrowed the funds from your lender to pay them. Any points paid by the seller are treated as being paid directly by you.
In addition, monies you pay, such as a down payment or earnest money deposit, are considered monies out of your pocket that cover the points so long as they’re equal to or more than points. Say you put $10,000 down and pay $1,000 in points. The down payment exceeds the points, so your points are covered and therefore you can deduct them if you itemize. If you were to put nothing down but you paid one point, that $1,000 wouldn’t be deductible.
6. Your points have to be calculated as a percentage of your mortgage. One point is 1% of your mortgage amount, so one point on a $100,000 mortgage is $1,000.
7. The points have to show up on your settlement disclosure statement as “points.” They might be listed as loan origination points or discount points.
Tip: You can also fully deduct points you pay (for the year paid) on a loan to improve your main home if you meet tests one through five above.
Where to Deduct Points
Figured out that your points are deductible? Here’s how you deduct them:
Your lender will send you a Form 1098. Look in Box 2 to find the points paid for your loan.
If you don’t get a Form 1098, look on the settlement disclosure you received at closing. The points will show up on that form in the sections detailing your costs or the sellers’ costs, depending on who paid the points.
Report your points on Schedule A of IRS Form 1040.
There are two things related to points that you can’t deduct:
1. Interest buy-downs your builder paid
Some builders put money in an escrow account (as a buyer incentive) that the lender taps each month to supplement your mortgage payment. Those aren’t considered points even though the money is used for an interest payment and it’s prepaid. You can’t deduct the money the builder put into that escrow account.
2. Interest payments from government programs
You can’t deduct points paid by a federal, state, or local program, such as the federal Hardest Hit Fund, to help you if you’re experiencing financial trouble.
For More information go to http://www.michaelsikes.com/are-mortgage-points-tax-deductible/
Thursday, May 21, 2015
Ugliest Home in Moody - And it Can be yours for little $$$
Ugliest Home in Moody - And it Can be yours for little $$$
Very large 2 bedroom home. Master is super-sized. Kitchen has built-in stove. Detached garage for that handyman workshop. Moody schools. Walk to town.
http://www.msikes.remaxtexas.com/Home/204-8th-Street-Moody-TX-76557/TTP/107895/
http://www.msikes.remaxtexas.com/Home/204-8th-Street-Moody-TX-76557/TTP/107895/
There are several programs designed to assist home buyers financially with assistance from 4% of the purchase price up to $40,000, some that never need to be repaid. Others that you do not pay off until you sell the home or have finished paying the mortgage off!
This property owner will require you to have at least $1000 available plus proof you can get a loan or already have the cash. I can help prepare you if you do not already have what you need.
I work regularly with First Time Buyers guiding them through the process from start to finish. You can email me by clicking Reply up at the top of the page or feel free to call me at 254-495-5637. You can easily reach me 7 days a week in between the hours of 9:00AM and 9:00PM
Government programs based on federal grants and state or county bonds and even two programs from the City of Austin exist to help buyers make their Home Ownership Dreams come true. These include Annual Tax Credits up to $2,000, grants of $10,000 or 4% of the purchase price or Equity Share Loans of 0% up to $40,000!
HUD owned properties are often the best priced properties in the market and demand is high for great value! Call now!
You will need a Thousand Dollars for Earnest Money plus proof of cash available or a letter from a Bank that you have been approved for a Loan to make an offer on this home. If you do not already have it I can help you get prepared.
This property is one of many currently available and affordable. Let us help you with all the necessary information needed. Click Reply up top on the page or give me a call at 254-495-5637 Call any day after 9AM and up to 9PM.
Financing Available. Call for details
Michael Sikes
RE/MAX Temple-Belton
254-495-5637
www.michaelsikes.com
$57000 / 3br - 1568ft2 - 1 Acre of Country Living with 3/2 home - Think Horses!!!
Own your own little piece of Country! This 2002 extra nice manufactured home with 3 bedrooms, 2 baths and 2 living areas on a 1 acre tract provides a serene atmosphere for your comfort and relaxation! Great place for a First Time Home Buyer! All for $57,000
http://www.msikes.remaxtexas.com/Home/2627-Theresa-Lane-Moody-TX-76557/TTP/109486
http://www.msikes.remaxtexas.com/Home/2627-Theresa-Lane-Moody-TX-76557/TTP/109486
There are several programs designed to assist home buyers
financially with assistance from 4% of the purchase price up to $40,000, some
that never need to be repaid. Others that you do not pay off until you sell the
home or have finished paying the mortgage off!
This property owner will require you to have at least $1000 available plus proof you can get a loan or already have the cash. I can help prepare you if you do not already have what you need.
I work regularly with First Time Buyers guiding them through the process from start to finish. You can email me by clicking Reply up at the top of the page or feel free to call me at 254-495-5637. You can easily reach me 7 days a week in between the hours of 9:00AM and 9:00PM
This property owner will require you to have at least $1000 available plus proof you can get a loan or already have the cash. I can help prepare you if you do not already have what you need.
I work regularly with First Time Buyers guiding them through the process from start to finish. You can email me by clicking Reply up at the top of the page or feel free to call me at 254-495-5637. You can easily reach me 7 days a week in between the hours of 9:00AM and 9:00PM
Government programs based on federal grants and state or
county bonds and even two programs from the City of Austin exist to help buyers
make their Home Ownership Dreams come true. These include Annual Tax Credits up
to $2,000, grants of $10,000 or 4% of the purchase price or Equity Share Loans
of 0% up to $40,000!
HUD owned properties are often the best priced properties in
the market and demand is high for great value! Call now!
You will need a Thousand Dollars for Earnest Money plus proof
of cash available or a letter from a Bank that you have been approved for a
Loan to make an offer on this home. If you do not already have it I can help
you get prepared.
This property is one of many currently available and affordable. Let us help you with all the necessary information needed. Click Reply up top on the page or give me a call at 254-495-5637 Call any day after 9AM and up to 9PM.
This property is one of many currently available and affordable. Let us help you with all the necessary information needed. Click Reply up top on the page or give me a call at 254-495-5637 Call any day after 9AM and up to 9PM.
Wednesday, May 20, 2015
OPEN HOUSE THIS SUNDAY!!! 2:00 TO 4:00 Down Payment Assistance available - Great Schools - Large Texas Home
OPEN HOUSE THIS SUNDAY!!! 2:00 TO 4:00 May 24th 2015
Hosted by Michael Sikes
711 Evergreen Farm DRIVE
TEMPLE, TX 76502
$199,900.00
Tired of compacts? Over 3300 square foot, 2-story home in the Windmill Farms subdivision. 4 bedrooms, 2-1/2 baths, formal dining, game room, office...it's
all here. Home has recently been painted and new carpet throughout. Garden tub, walk-in shower, plenty of closet space. Privacy fenced yard, 2-car garage, in a cul-de-sac perfect for large family. You see it...you will love it.
http://www.msikes.remaxtexas.com/Home/711-Evergreen-Farm-Drive-Temple-TX-76502/TTP/108193/
https://www.facebook.com/michaelsikeshomes
Hosted by Michael Sikes
711 Evergreen Farm DRIVE
TEMPLE, TX 76502
$199,900.00
Tired of compacts? Over 3300 square foot, 2-story home in the Windmill Farms subdivision. 4 bedrooms, 2-1/2 baths, formal dining, game room, office...it's
all here. Home has recently been painted and new carpet throughout. Garden tub, walk-in shower, plenty of closet space. Privacy fenced yard, 2-car garage, in a cul-de-sac perfect for large family. You see it...you will love it.
http://www.msikes.remaxtexas.com/Home/711-Evergreen-Farm-Drive-Temple-TX-76502/TTP/108193/
https://www.facebook.com/michaelsikeshomes
There are several programs designed to assist home buyers
financially with assistance from 4% of the purchase price up to $40,000, some
that never need to be repaid. Others that you do not pay off until you sell the
home or have finished paying the mortgage off!
This property owner will require you to have at least $1000 available plus proof you can get a loan or already have the cash. I can help prepare you if you do not already have what you need.
I work regularly with First Time Buyers guiding them through the process from start to finish. You can email me by clicking Reply up at the top of the page or feel free to call me at 254-495-5637. You can easily reach me 7 days a week in between the hours of 9:00AM and 9:00PM
This property owner will require you to have at least $1000 available plus proof you can get a loan or already have the cash. I can help prepare you if you do not already have what you need.
I work regularly with First Time Buyers guiding them through the process from start to finish. You can email me by clicking Reply up at the top of the page or feel free to call me at 254-495-5637. You can easily reach me 7 days a week in between the hours of 9:00AM and 9:00PM
Government programs based on federal grants and state or
county bonds and even two programs from the City of Austin exist to help buyers
make their Home Ownership Dreams come true. These include Annual Tax Credits up
to $2,000, grants of $10,000 or 4% of the purchase price or Equity Share Loans
of 0% up to $40,000!
HUD owned properties are often the best priced properties in
the market and demand is high for great value! Call now!
You will need a Thousand Dollars for Earnest Money plus proof
of cash available or a letter from a Bank that you have been approved for a
Loan to make an offer on this home. If you do not already have it I can help
you get prepared.
This property is one of many currently available and affordable. Let us help you with all the necessary information needed. Click Reply up top on the page or give me a call at 254-495-5637 Call any day after 9AM and up to 9PM.
This property is one of many currently available and affordable. Let us help you with all the necessary information needed. Click Reply up top on the page or give me a call at 254-495-5637 Call any day after 9AM and up to 9PM.
OPEN HOUSE!!! Saturday May 23rd 2015 2:00 to 4:00 4305 VISTA COURT TEMPLE, TX 76502 - Down Payment Assistance - Large Trees - Great Schools
OPEN HOUSE!!! Saturday May 23rd 2015 2:00 to 4:00
Hosted by Michael Sikes4305 VISTA COURT
TEMPLE, TX 76502
$209,500.00
Great home in the Canyon Creek area. Great family home, small cul-de-sac, perfect yard for kids to play, beautiful back yard, nice decks mature trees, creek behind property. Sun room with
redwood deck and hot tub.
http://www.msikes.remaxtexas.com/Home/4305-VISTA-COURT-Temple-TX-76502/TTP/109471
https://www.facebook.com/michael.sikes
There are several programs designed to assist home buyers financially with assistance from 4% of the purchase price up to $40,000, some that never need to be repaid. Others that you do not pay off until you sell the home or have finished paying the mortgage off!
This property owner will require you to have at least $1000 available plus proof you can get a loan or already have the cash. I can help prepare you if you do not already have what you need.
I work regularly with First Time Buyers guiding them through the process from start to finish. You can email me by clicking Reply up at the top of the page or feel free to call me at 254-495-5637. You can easily reach me 7 days a week in between the hours of 9:00AM and 9:00PM
This property owner will require you to have at least $1000 available plus proof you can get a loan or already have the cash. I can help prepare you if you do not already have what you need.
I work regularly with First Time Buyers guiding them through the process from start to finish. You can email me by clicking Reply up at the top of the page or feel free to call me at 254-495-5637. You can easily reach me 7 days a week in between the hours of 9:00AM and 9:00PM
Government programs based on federal grants and state or county bonds and even two programs from the City of Austin exist to help buyers make their Home Ownership Dreams come true. These include Annual Tax Credits up to $2,000, grants of $10,000 or 4% of the purchase price or Equity Share Loans of 0% up to $40,000!
HUD owned properties are often the best priced properties in the market and demand is high for great value! Call now!
You will need a Thousand Dollars for Earnest Money plus proof of cash available or a letter from a Bank that you have been approved for a Loan to make an offer on this home. If you do not already have it I can help you get prepared.
This property is one of many currently available and affordable. Let us help you with all the necessary information needed. Click Reply up top on the page or give me a call at 254-495-5637 Call any day after 9AM and up to 9PM.
This property is one of many currently available and affordable. Let us help you with all the necessary information needed. Click Reply up top on the page or give me a call at 254-495-5637 Call any day after 9AM and up to 9PM.
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