January Residential Lending Successes

Good morning to the New year 2018,

The tax bill – first major rework since 1986 – brings a few plus’s and minus’s. My first concern is how this might effect you, my client.  But first, unlike the 1986 the tax law, voting on this bill split right down party lines – 100%.   Shameful, yet the nature of childish discord in action.  Fortunately, those actually paying taxes, are watching.

Key pluses for taxpayers:

  • +  Student Loan Interest potentially deductible
  • +  Child tax credit expands and increases, so too Dependent Care Credit
  • +  Standard deduction increased
  • + Long-term Capital Gains taxation:  No tax if less than 77 K; 15 % from 77 K yo 479 K income, and 20 % beyond
  • +  250 / 500 exclusion on the sale of a personal residence and the 1031 exchange both remain unchanged
  • Two Specific Offsets:
  • –  Home Equity Lines of Credit no longer deductible – exceptions are purchase money and potentially equity used for investment or rehab purposes
  • –  Along with a reduction in interest we can write off ( $ 750,000 ) the breaking out and cutting in half for married filing separate will be a huge negative surprise ( $ 375,000 )

These are the items I will see most often.  However, there are others, but most will have a smaller impact, or impact a limited number of people.  We will discuss them as more is learned.

The Good News:  Thankfully, this time we have a full year to plan, instead of a year-end mad scramble.  So far, I have not seen examples of people hit with big increases in tax to pay, as the higher standard deduction and lower tax rates will offset most lost “write-offs”.

Add to this lower corporate tax rates with higher wages, and this new plan has the potential to benefit Small Business, working Americans, and pension plans.

Because You Matter

With changes coming, please give a ring if you or your friends are considering a change.  And key to a successful change?  It often begins with an early, first call conversation. It provides the benefit of tweaking more of the things that best serve you.

Here is a quick list of how we can be of help to you:

  • Conventional Financing, including Veteran’s
  • Purchase, Refinance and Cash-Out loans
  • Construction and Re-Hab programs
  • Jumbo loans and Rental properties
  • Buy the replacement home, before selling the current
  • Putting off Capital Gains taxes on both Occupied and Investment properties
  • Reverse Mortgages and such solutions, when cash flow may be your challenge

Truly, home financing needs to be more than just a fast look at the numbers. The importance of our first conversation helps to carefully answer your questions and address your concerns and needs. We can then determine solutions best fit for you.

My suggestion:  Plan Today, so you will be ready for your Tomorrow

We specialize in straight forward loans.  Yet we never turn away from a challenge. We find the “Yes”, when others say, “no way”.  Give us a call – we are ready to help.

As always, thank you for your calls and referrals.  We love your success.

We remain gratefully yours.

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