There are 2 important Richmond VA real estate tax deductions you won't be able to claim in 2012.
Congress was so busy bickering at the end of 2011 that it allowed two important tax breaks for home owners to expire.
Richmond VA Real Estate Deductions We Lose in 2012
1. You can no longer deduct the cost of private mortgage insurance premiums.
2. You aren't getting a tax credit for some of your home energy improvements.
You can take advantage of these provisions when you file your 2011 tax return — but beyond that, who knows?
Private Mortgage Insurance
Up until the end of last year, you could deduct your private mortgage insurance premium (PMI) when calculating your income taxes. It was a benefit targeted to lower- and middle-income home owners. Once you made $100,000 or more, it started disappearing and anyone who had more than $110,000 of adjusted gross income couldn't use it.
The home owners who have to get mortgage insurance are Richmond VA real estate buyers with less than a 20% down payment and refinancers with less than 20% equity. That's more often first-time home buyers or younger home owners and less often move-up buyers who've built up equity in their homes. So in taking away the PMI deduction, Congress is raising taxes paid by first-time home buyers and younger home owners leaving them with less money to spend on housing. That's especially headed in the wrong direction when the housing market is struggling to recover.
Energy Tax Credit
The tax credit for energy efficiency upgrades on Richmond VA real estate wasn't enormous — it was capped at $500 or 10% of the cost for some projects; less for others. But it was a nice incentive to add insulation, new windows, or to upgrade your HVAC system with a more efficient unit.
Home ownership and energy independence advocates will fight to get those expired tax rules back on the books in 2012 and to have them apply retroactively. It's a familiar fight — they had to do the same thing at the end of 2010. The battle this year is more complicated however, since we're in an election year.
Most of us consider the renewal of those policies is a no-brainer. And we really don't appreciate it when Congress lets those rules expire at the end of one year and then leaves us to wonder the rest of the next year whether they'll be renewed.
Will you be claiming either of these Richmond VA real estate tax breaks on your 2011 returns?
Your FICO score is not a regular credit score. It is the brand of score most widely used in mortgage qualification. The FICO score was developed by Fair Isaac and a company known for developing risk assessment models.
It is a complex equation that is not fully disclosed. The information used to calculate your FICO score is found on your credit report and much of it is interdependent in the calculation. This makes it an extremely complex formula.
There are five main areas of the FICO score calculation:
The first and largest portion is your payment history, and it accounts for 35% of your FICO score. This looks at how well you do at paying you bills on time. It takes into account any late payments you might have and looks at the severity, how recent, and how often it happens. The formula reviews a total of seven years of your payment history.
The next 30% is your utilization. This is calculated by dividing your outstanding balances by your account limits. This is done across all your accounts and on an account by account basis.
How Credit History Affects Your Fico Score
15% of your FICO score calculation is your credit history. It is better defined as – how long have you had credit? There are two sub-factors that are considered: The age of your oldest account and the average age of all your accounts.
Inquiries make up the next 15%. These are better defined as how many times your credit report has been reviewed. There are two different types – soft and hard.
Soft is when anyone like yourself, an employer or insurance company, checks your report. Hard is when a creditor checks your report after you have applied for a new account.
The last 10% is your credit mix. This takes into account the credit that you use. There are few rules discussed, but using several different types of credit is in your favor. Many of these factors are interdependent which makes understanding and attempting to estimate your FICO score nearly impossible.
What is really important is that you know what goes into it and how you can impact your FICO score on a day to day basis. You can learn more about what goes into a credit score, and the complexity of the system, by reading this article at BestCredit.com.
If you'd like a lower rate on your mortgage, HARP might be able to help.
Get more mortgage tips and information by choosing the "Mortgage Info" category to your right. If you have questions about a mortgage or qualifying for a mortgage, use the comment link to contact us.
Whether you're trying to sell your Richmond VA home because you're moving or if you're just trying to flip a property for profit, you need to know about how the real estate market works and what you can do to sell your Richmond VA home easily.
Paint Your Richmond VA Home
Paint your house in neutral colors; this will allow potential buyers to more easily picture themselves living in it. Light candles or bake cookies, so potential home buyers are greeted with an aroma they can relate to. An atmosphere they feel welcome in may determine whether they choose to buy your Richmond VA home.
Get a Mechanical Checkup
Have someone check your air conditioner and heating before listing your house. Buyers generally don't want a home that needs large investments, like a new furnace, so if the AC and heating are fine, it can appeal to more buyers.
Get a Richmond VA Real Estate Agent
You may not always want to listen to what they say, using the services of a trained real estate agent will save you money in the long run. They do know what they're talking about. You may not like some of the things your real estate agent tells you, following his or her advice will help you sell your Richmond VA home faster and for more money.
While you may think that selling your home yourself will save you a commission, statistics show that using the services of a real estate professional will get your Richmond VA home sold quicker and with much less hassle than selling it yourself.
Check Your Curb Appeal
Curb appeal is a major factor in whether or not buyers will stop to look at your home. Your house and yard will look better maintained if you mow the lawn and trim the shrubbery. Keep in mind that the first impression is a lasting one, so present the exterior of your house in its best light.
A home that looks inviting is far more appealing to buyers than one that looks neglected. It will definitely impact how many people coming to view your home.
Get Rid of Pets
If you have a pet, your home will have an odor to potential buyers who enter. You get used to your home's scent from your pet and may not think this is an issue, but be aware that others can sniff out your pet's smell as soon as they walk in the door. Take measures to eliminate the odors, so buyers won't be put off.
At the same time, don't overwhelm potential buyers with air fresheners, candles or other fragrances. You may offend the buyer, set off their allergies and even drive them to leave your home without seeing it in full! Why compromise a sale by making the potential buyer feel like they have to rush through the viewing? Put potpourri inside of a bowl if you want a nice-smelling home.
There is a lot to consider when selling a Richmond VA home, but the time you spend learning what is important and sprucing up before your home goes on the market will certainly pay off!
Find more tips for helping you sell your Richmond VA home here.
Housing policies caused the financial crisis, according to Peter Wallison, a scholar at The American Enterprise Institute. Wallison lays all the blame on Fannie Mae and Freddie Mac, along with government intervention.
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