What's the Point?

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.

Changing the Lock is Key

There are times when you need to change the locks on your home to protect your family and possessions. It should always be considered when you move into a new home; when keys are lost, stolen or unreturned; or a cleaning or other service provider hasn't returned the key.

Replacing the lockset would give you a totally new mechanism that should work better and if you go back with the same manufacturer, you'll probably avoid any carpentry. You can order the locks online and have them work with the same key at no extra charge.

Another alternative is to have a locksmith rekey them. The locksmith can easily make all of the locks work with the same key. Compare the cost and decide which would be a better expenditure.

While you're considering your security, a key safe might be a very convenient addition. Most makers say that it is much easier to break into a home than a key safe. The cost is reasonable and you can attach it to your exterior wall. Generally, they're combination locks that would allow you access if you or another family member forgot their key. It's also convenient to give a house keeper the combination and can be easily changed if necessary.

Water Damage - Covered or Not?

A number of things can cause water damage to a home and it's important to know whether they're covered by your insurance policy. Some water damage may be covered and other may not be. Generally, you need an incident to invoke coverage rather than something gradual due to lack of maintenance.

However, some incidents are specifically exempt from homeowner policies such as floods. A flood can be described as rising water due to overflow of inland or tidal waters or unusual and rapid accumulation or runoff of surface water from any source.

Homes in designated high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance.

Even if you don't live in a dedicated flood zone, you could be affected by flood damage. Review your policy about water damage and call your insurance agent to get a better understanding. Ask if you need to purchase additional coverage or separate flood insurance along with other questions.

Flood insurance can be purchased for the building and the contents. The average flood insurance policy costs about $600 per year. For more information, see the National Flood Insurance Program.

Top 4 cool things about the new iPhone 4 | Inman News

Check out this great article talking about the new iPhone 4. Can't wait to at least update my phone software and eventually move up to this phone. The iPhone has really made my life as a REALTOR much easier to stay connected with family, clients and co-workers. It allows me to stay on top of my business no matter where I am.

Click this link to read the article. Top 4 cool things about the new iPhone 4 Inman News

Realty Times - Top 10 Home Buying Mistakes

Check out this list of Top 10 Home Buying Mistakes as reported by Realty Times. When it comes to buying a home it really helps to have the experience and advice of a good REALTOR to help you through all of the rough patches and complicated steps involved with buying a home. Click on the link below Realty Times - Top 10 Home Buying Mistakes

Tax Tips for Homeowners of Foreclosed Real Estate

Check out these 10 Facts that the IRS wants owners of Foreclosed Properties to know aobut the amount of the debt that is forgiven.

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Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

If you have ever wondered why mortgage modifications and short sales are as challenging as they are, a good friend of mine shared this Video clip with me. It will really open your eyes as to the "games" that are going on in the market. While this video only talks about FDIC and IndyMac it probably works very similarly with the other banks who have been helped by FDIC.

Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales