The following are current 30-year fixed mortgage rates at a few area banks.
Chase Bank - 6.19%
M & I Bank - 6.27%
North Shore Bank - 6.%
Tuesday, April 22, 2008
Tuesday, April 15, 2008
WHEDA Loans
WHEDA is loan program in Wisconsin designed to help first-time home buyers finance a home purchase. The program started in 1972 as a way to make loans for low and moderate income households. WHEDA loan benefits include:
-Low, fixed interest rate
-Low closing costs (usually around $800)
-Low down payment (3% of purchase price)
-Lower mortgage insurance premiums
-Job Loss Protection
-Home buyer education.
In Brown County, your income must be less than $63,700 (1-2 person family) to qualify for a WHEDA loan.
When choosing a home to purchase, the price must be less than $204,432 and it must be your principal residence.
Keep in mind that although WHEDA is able to assist many first-time home buyers, there are some items that can affect your approval, such as poor credit history, not enough time at your current job, or not enough savings for the down payment.
Please contact me if I can answer any questions or get you more info about WHEDA loans.
-Low, fixed interest rate
-Low closing costs (usually around $800)
-Low down payment (3% of purchase price)
-Lower mortgage insurance premiums
-Job Loss Protection
-Home buyer education.
In Brown County, your income must be less than $63,700 (1-2 person family) to qualify for a WHEDA loan.
When choosing a home to purchase, the price must be less than $204,432 and it must be your principal residence.
Keep in mind that although WHEDA is able to assist many first-time home buyers, there are some items that can affect your approval, such as poor credit history, not enough time at your current job, or not enough savings for the down payment.
Please contact me if I can answer any questions or get you more info about WHEDA loans.
Thursday, April 10, 2008
Current Mortgage Rates
The following are average 30-year fixed mortgage rates in our area for the week of 4/7/08.
Associated Bank - 5.81%
M & I Bank - 6.03%
North Shore Bank - 6.15%
Associated Bank - 5.81%
M & I Bank - 6.03%
North Shore Bank - 6.15%
Tuesday, April 8, 2008
Monday, April 7, 2008
Understand Capital Gains in Real Estate
When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:
1. Purchase price: _______________________ The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.
2. Total adjustments: _______________________
To calculate this, add the following:
-Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
-Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
-Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. Your home’s adjusted cost basis: _______________________
The total of your purchase price and adjustments is the adjusted cost basis of your home.
4. Your capital gain: _______________________
Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
-You have lived in the home as your principal residence for two out of the last five years.
-You have not sold or exchanged another home during the two years preceding the sale.
-You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:
1. Purchase price: _______________________ The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.
2. Total adjustments: _______________________
To calculate this, add the following:
-Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
-Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
-Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. Your home’s adjusted cost basis: _______________________
The total of your purchase price and adjustments is the adjusted cost basis of your home.
4. Your capital gain: _______________________
Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
-You have lived in the home as your principal residence for two out of the last five years.
-You have not sold or exchanged another home during the two years preceding the sale.
-You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
Thursday, April 3, 2008
How to Hold a Successful Garage Sale
Garage sales can be a great way to get rid of clutter — and earn a little extra cash — before you sell your home. But make sure the timing is right. Garage sales can take on a life of their own, and it might not be the best use of your energy right before putting your home on the market. Follow these tips for a successful sale.
1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.
2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.
3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.
4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.
5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.
6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.
7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)
8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.
9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.
10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.
11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.
12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!
1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.
2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.
3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.
4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.
5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.
6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.
7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)
8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.
9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.
10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.
11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.
12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!
Current Mortgage Rates
The following are average 30-year fixed mortgage rates in our area for the week of 3/31/08.
Associated Bank - 6.05%
M & I Bank - 6.15%
North Shore Bank - 6.27%
Associated Bank - 6.05%
M & I Bank - 6.15%
North Shore Bank - 6.27%
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