Real Estate's Fiscal Cliff: 5 Items To Watch Out For
The IRS allows homeowners who pay mortgage insurance in connection with a home acquisition to deduct the premiums from their taxes along with their mortgage interest payments. In order to be tax-deductible, the mortgage insurance contract must have been issued after 2006.
For complete details about taxes and mortgage insurance, check IRS Publication 936.
No. 4: Operation Twist. The Federal Reserve's Operation Twist is scheduled to come to a close at the end of the year. Operation Twist is a money-recycling program in which the Fed has bought longer-term Treasury bonds while selling shorter-term bonds in order to hold down rates.
While it sounds technical, the program is essentially an effort is to lower long-term interest rates, including mortgage rates.No. 5: Independent foreclosure reviews. Originally slated to end on July 31, consumers now have until the end of this year to submit a request for a foreclosure review at http://www.independentforeclosurereview.com. To request a foreclosure review, you must log on and first check your eligibility. You must be a customer of one of the participating servicers. If you are, your next steps are to fill out and submit a “Request for Review Complaint Form.” Forms must be sent online or postmarked before Dec. 31. For general questions or for help completing the form, call 1-877-465-0428. The five items above aren't the only issues threatening the real estate market as we come to the turn of the year. A nearly insolvent FHA and a still-undetermined definition of what a “Qualified Residential Mortgage” should be are bound to also have a profound influence on the mortgage market moving forward.
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