Category: (5)

Is it time to re-finance?

by char-maccallum-real-estate-group-inc

Refinancing Again

At the Char MacCallum Real Estate Team, we’re constantly bombarded by lenders to refinance our mortgage under a variety of programs. The volume of offers can almost make you numb to the rational consideration.

There are common rules of thumbs that homeowners and agents use such as not refinancing more often than every two years or there must be at least 2% savings from your previous mortgage rate may not always be accurate.

The reality is that if you can refinance for a lower rate and you’ll be in the home long enough to recapture the cost of refinancing, it should be considered. The costs of previous refinancing that haven’t been recaptured by monthly savings may need to be added to the costs of the new refinance.

Take a look at the chart that shows the average rates according to Freddie Mac for 2012. They are lowertoday than they were in January of 2012 and for the ten years before that.

Refinancing may save you a substantial amount of money, especially if you’re going to be in your home for a long time. It is definitely worth investigating. To get a quick idea of what your savings could be, use this refinancing calculator.

Would you like more information on re-financing?  Contact Char MacCallum and the Char MacCallum Real Estate Group at 913-782-8857

Looking for Olathe Homes for Sale?

www.findkansascityrealestate.com

What to do in Kansas City on President’s Day!

by char-maccallum-real-estate-group-inc

Have the day off and looking for something to do?  

Here’s a few things we’ve found around Kansas City – especially if you have kids!

1.  Visit our Kansas City National Archives Center.  There is an exhibit on “From the School House to The White House”  until Feb 23rd.  It’s presidential!  It’s History!  Making President’s Day relevant for a day off of school?  Check!

2.  Need room to run and the kids acting like wild monkeys?  Visit the Kansas City Zoo

3.  Union Station has a cool line up of great programs today

4.  Visit Crown Center and check out Funville, What do you want to be?  Free!

5.  Go ice skating at Park Place!

What are we doing today?  We are out showing Olathe Homes for Sale!  It is a busy time of year and buyers are out looking at our Kansas City Real Estate!

Enjoy President’s day and let us know what you are up to today!

The Char MacCallum Real Estate Group

www.findkansascityrealestate.com

Let Your Tenants Send Your Kids to College

by char-maccallum-real-estate-group-inc

Thinking about Rental Properties for Additional Income?

Most people have lots of things to save for but not always enough discretionary income after the family essentials have been met.

A relatively small investment in a rental home can control a good home that will easily rent, generate positive cash flows and pay for itself. The borrowed funds create leverage that earn a return on the total value of the home and not just the amount of cash you have invested.

The strategy is simple. Find a slightly below average priced home that will rent well. It will appeal to a larger group of people while it’s rented and when it’s ready to be sold.

Rent the home and maintain its condition over the years. As the loan amortizes and the value increases, the equity will grow. When your student is ready to start college, you’ll actually have several options.

You can sell the property; pay the tax on the gain at the reduced capital gains rate and fund the education. Another option would be to refinance and take the proceeds to pay for the tuition. This would allow you to continue to own the asset but would free your equity and under current tax laws is a non-taxable event.

Regardless of whether you’re trying to plan for your children’s education or your own retirement, rental property offers many solid investment opportunities. Contact me if you want more information.

The Char MacCallum Real Estate Group can help you with Kansas City area Rentals.

Call the office at 913-782-8857

Looking for Kansas City Real Estate?

What’s the Point of a Point?

by char-maccallum-real-estate-group-inc

Wondering what a “point” is?

Pre-paid interest, sometimes called “points”, is generally tax deductible when a person pays them in connection with buying, building or improving their principal residence. When points are paid on a refinance, they are not a current deduction but have to be taken pro-rata over the life of the mortgage.

For instance, if $3,000 in points were paid on refinancing a 30 year mortgage, deduction of $100 per year is allowed. When the loan is paid off or replaced by refinancing again or the home is sold and the mortgage paid off from the proceeds, the balance of any un-deducted points may be taken in that tax year.

Your tax professional needs to be made aware of any of these situations so that he can accurately reflect the deduction in your return. Currently, the most common situation is where homeowners may be refinancing their home for the second, third or even fourth time. If there are points that have not been completely deducted, they need to be treated in the year of refinancing.

For more information, see points in IRS Publication 936; there is a section on refinancing in this publication. For advice considering your specific situation, contact your tax professional.

Looking for a Kansas City Home?

Contact The MacCallum Real Estate Group

 

Avoiding Unexpected Expenses When Buying

by char-maccallum-real-estate-group-inc

What have you heard about home warranties?

It’s common for sellers to consider offering and buyers might find it an incentive, but a growing number of homeowners are purchasing the home warranties themselves to limit the unexpected expenses of repairs and replacements. We’ve had it help quite a few of our sellers at The Char MacCallum Real Estate Group.

A home protection plan is a renewable service contract that covers the repair or replacement of many of the components in a home. Some homeowners especially like the convenience that it organizes a qualified service provider as well as the cost of the items.

There are a variety of companies that offer home warranties and the coverage may differ but the majority of things will include heating, air conditioning most built-in and some free-standing appliances, as well as other specific items. Additional specific coverage may be available for other things like pool and spa equipment.

Some investors are even placing this coverage on their rental properties to limit the amount of maintenance repairs during the year. It is a viable alternative to managing the financial risk and the stress dealing with unexpected expenses.

If you’re interested in home warranties, contact us – we can help get you what you need!

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