Any Real Estate Benefits from Fiscal Cliff Deal ?

For the most part the Fiscal Cliff solution passed last night by Congress patched a few important issues and then punted the incredibly important long term issues two months down the road. The Real Estate community did benefit from the bill’s final passage in three important areas as follows:

1.  No change to the mortgage interest deduction

Though this is likely going to be reduced eventually for second homes and/or the overall $1.1 million cap, for the moment it remains unscathed

2.  Mortgage Debt Forgiveness Act was extended throughout 2013.

This was an important benefit to those short sellers that still need to work out their home sales this year.

3.  Private Mortgage Insurance remains deductible from taxable income.

As we get more inventory in 2013 (hopefully a lot more), as “all cash” and large down payment buyers are finite in numbers, the 10% down or less buyers will greatly benefit from this continued tax break.

In the meantime, mortgage rates have gone up about .125% from last week, due in response to the big Stock Market advance Monday and today.

Tomorrow brings ADP employment and Friday the big Employment Report for December. Both are calling for the addition of about 150,000 jobs. A miss will help rates, an amount above 200K will hurt rates.

I hope you have had a wonderful Holiday Season. Time to get ready for an incredible 2013!

Let me know if I can help you or any of your clients with their home financing needs.

January 2, 2013 by · Leave a Comment

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About Bill

Bill is the Preferred Mortgage Advisor for Opes Advisors, and will be one of the first team members to contact you. Bill is a Certified Mortgage Planner and as a Mortgage Banker and Mortgage Broker, he has been custom tailoring loan plans for clients for over 20 years. Bill offers financial advice on how to properly structure financing to help his clients save money while building wealth, whether you are purchasing your first home or a seasoned investor. Feel free to contact him at the telephone number provided or e-mail him at bill@trustedloanadvisor.com

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