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2018 taxes for homeowners: How 2018 tax law changes affect you

Tax law changes: Homeowners are likely paying more You’re not alone if you think 2018 taxes for homeowners seem odd, scary, and costly. Projections on the new tax law estimate that property owners will pay an additional $668.4 billion in the next few years. This is due to eliminating deductions such as: Taxes not paid or accrued in a trade or business (except for up to $10,000 in State and local taxes), Interest on mortgage debt in excess of $750K, Interest on home equity debt, Non-disaster casualty losses So what can you expect when you file 2018 taxes? Itemized deductions Taxpayers are allowed to write off either their standard deduction or itemized deductions — but not both. Under tax reform, interest on home equity debt is only deductible if the money is used to make a “substantial improvement” in the property. Third, it used to be that taxpayers could write off both property taxes and state income taxes. Under tax reform, state and local taxes (i.e. property tax and sales tax) remain deductible. Homeowners with high property and sales tax states like Washington, Louisiana, Texas and others will likely exceed this limit. Those who paid mortgage insurance in 2018 must file their taxes before the deadline, then, can submit an amended return if Congress approves the deduction later in the year. Most homeowners will elect to take the standard deduction.

Detroit’s mortgages return to pre-recession levels, still face obstacles

(Photo: Max Ortiz, The Detroit News) Detroit — Nearly 1,300 home buyers took out mortgages in the city in 2018, a number not seen here since before the Great Recession. More than six years later, most home sales still are all-cash, and many Detroiters cannot obtain a loan. “Undoubtedly, Chemical’s presence will help residents access these tools.” (Photo: Max Ortiz, The Detroit News) Bertha Alexander relied on one of those tools after she lost her home insurance on the Morningside bungalow she purchased through a land contract in 2013. Since then, the bank has joined other efforts to increase financial literacy and lending. Maurice Cox, city of Detroit planning and development director, said Chemical Bank's move to Detroit is an endorsement that the city's recovery can be sustained. In 2018, residential properties gained more than $400 million in value and 90 percent of Detroit’s 194 neighborhoods saw increases in residential home values. While it is down from 97 percent in 2014, according to the Urban Institute, the national average is 36 percent. It offers low-interest mortgages and second loans up to $75,000 above the property’s appraisal for repairs. “We want people to know you can get a mortgage in the city of Detroit,” Pate said. Quicken Loans, Detroit's largest home lender in 2018 with 439 mortgages, provided $5 million to partner with Home Depot to renovate 70 homes in the city since 2015.

Cost of living: The purchasing power of a dollar in every state

To shed light on these differences that reflect the relative purchasing power of Americans in every state, 24/7 Wall St. calculated the value of a dollar in each using data from the Bureau of Economic Analysis. For example, with Hawaii’s relatively high housing prices, a dollar spent on rent there is worth only 61 cents. States with large shares of residents living in expensive housing within urban areas account for the vast majority of the states where a dollar is worth the least. A dollar is generally worth much more in states, particularly in the South, where a smaller share of residents live in cities. North Carolina More:Economic climate: The best (and worst) states for business 34. South Dakota More:Financial security: Best (and worst) states to grow old in 42. For example, with Hawaii’s relatively high housing prices, a dollar spent on rent there is worth only 61 cents. In states where a dollar is worth less (those with the highest cost of living), many residents have higher incomes. While residents of New Jersey state see only $0.88 in value for each dollar they spend, the annual per capita income there is also almost $20,000 higher, more than enough to offset their lower purchasing power. For this reason, in most states with high resident incomes and steep consumer prices, the people living there can generally afford to fork out more for goods and services than can their counterparts in states with cheaper prices and lower salaries.

How a Stock Market Shakeup Affects Mortgages

Will the stock market shakeup affect mortgage rates and home sales? The Stock Market Shakeup and Home Sales Since then the market has continued to be turbulent. Then, President Trump's tariffs announcement made it drop 420 points on March 1. So how does the recent shakeup affect you if you’re thinking about buying or selling a home? When the yield on these notes increases, mortgage rates increase. On a $250,000 mortgage that’s $70 per month ($840 per year). But as interest rates rise, you could find yourself facing a monthly payment similar to what you would have with higher home prices and lower interest rates. It might be a good time to buy a home before rates increase any further, but only if you’re otherwise ready and only if you find a home you will be happy living in for years. Mortgage rates are still relatively low, making it a good time to take out a home loan. Short-term stock market shakeups should not be a factor in home buying or selling decisions.

Southern California’s median home price hits a record $520,000 despite rising mortgage rates

Southern California home prices in April surged 7.2% from a year earlier to reach an all-time high, a sharp increase at a time when rising mortgage rates are making an already pricey housing market even more so. "It's extremely hot," Derek Oie, an Inland Empire real estate agent, said of the market. "When is it going to end?" Indeed, home sales fell 1.5% in April compared with a year earlier — possibly because the number of homes offered for sale has fallen in recent months compared to the same time in 2017, according to online brokerage Redfin. of Realtors. "We don't have the ticking time bomb we had the last time around when we had a lot of folks with loans with stated income," he said, referring to loose standards that required little evidence that buyers could afford loans during the housing bubble of the mid-2000s. In April, the median — the price point at which half the homes sold for more and half for less — increased compared with a year earlier in all six counties included in CoreLogic's report: At that rate, April's median-priced home of $520,000 would carry a $2,781 monthly mortgage payment for buyers who put 20% down. Some Southern California real estate agents say the surge in mortgage rates is causing would-be buyers to bid less for homes or put their searches on hold. Heather Presha, a real estate agent who specializes in middle-class Leimert Park, said her clients haven't mentioned the rise in rates as an obstacle. 2:50 p.m.: This article was updated with additional analysis and comment from an economist and real estate agent.

How Much the Average House Costs in Each State

Here’s a look at the average home costs in each state in 2018. Alabama The average home price is $199,020. If you’re considering a move to the state, your best destination may be Birmingham, according to Housingpredictor.com. Their research points out that the city is a major hub for construction, banking, medical research, and more. The downtown is vibrant, with trendy stores and gourmet restaurants. Better still, there is an inventory of homes in the $80,000-$100,000 range. Alaska The state has a steady average home price of $286,438. Be wary: According to a report by the Alaska Journal of Commerce, the Anchorage housing market may be about to slide. Arizona The average home price is $286,067. Although Phoenix got hit hard when the housing bubble burst, the area’s sales last year tell the recovery story.

Home buyers beware: Most expensive housing markets in some states average $750,000-plus

The U.S. economic recovery and continued growth have had many positive effects on the nation and the population. For at least one group, however, the improving economy has had a negative impact — for potential homebuyers. Along with incomes and low unemployment, the housing market continues to grow. Of course, housing markets are different from one another. To determine the county with the most expensive housing market in every state, 24/7 Wall Street reviewed median home values of 3,119 counties and county equivalents as of the second quarter of 2017 from the National Association of Realtors. In California, the most expensive market has a median value in excess of $1 million. In other states, the most expensive market barely tops $200,000. homes valued $1,000,000+: 6.4% More: American cities with the most property crime in every state Most expensive housing market: Carver County Median home price: $329,383 Median mortgage payment: $1,331 Median household income: $88,638 (State: $65,599) Pct. homes valued $1,000,000+: 3.9% More: Cities where crime is soaring in every state Most expensive housing market: New York County Median home price: $932,366 Median mortgage payment: $3,768 Median household income: $75,513 (State: $62,909) Pct. 24/7 Wall Street is a USA TODAY content partner offering financial news and commentary.

Here are two new ways to boost retirement income

But are these newfangled alternatives to reverse mortgage loans safe—and sensible? In a shared equity agreement, the company gives you cash in exchange for a portion of the upside in the home’s value. Under the agreement, the company gives you cash in exchange for a portion of the upside in the home’s value at some point in the future. In essence, they become co-owners of your home (though you will still continue to pay the mortgage and property taxes). Shared equity agreements have a fixed term, often as little as 10 years but sometimes as long as 30. At the end of the term, you have to pay back the equity you received, plus the company’s share of appreciation, which most people do by selling the home. Converting to a rental Another option is called a sale-leaseback, offered by New York City-based start-ups Irene and EasyKnock. Then they rent your property back to you for as long as you want. Sale-leaseback companies also charge fees, of course. To repurchase your home, you’ll pay the funding amount you initially received, plus a premium of 5% in the first year or 2.5% in subsequent years.

Blockchain expert: “It’s not going away”

In a conversation with HousingWire's Sarah Wheeler, Hoffman discussed blockchain technology in relation to the mortgage industry. "We’re still in early stages of this, so I equate it to an automobile on a dirt road behind a horse and buggy. Our infrastructure is not there yet, but it is being developed.” Hoffman said. It will not take away jobs but it will change how we do things.” Hoffman explained to conference attendees the originations of blockchain and stressed the differences between it and bitcoin, which is commonly confused with blockchain. "They’re not the same thing," Hoffman explained. "Blockchain is the technology behind digital currencies, such as bitcoin or others," Hoffman said. "Whatever comes of bitcoin or others, the technology still remains." In an interview with HousingWire, Hoffman explained her goal in the mortgage space is to help people understand the importance and the uses of blockchain technology. "Without any discussions, your executive leaders are not going to push the technology forward," she said. "Yes, it’s technology, but so was the Internet and you don’t need to understand all the inner-workings of the Internet, but you need to understand how you can power it to help your business move forward.”

Can This New Reverse Mortgage Alternative Help You?

MoneyTips Reverse mortgages can be a useful tool for seniors attempting to convert the equity in their home into cash for living expenses or other retirement purposes. Once the primary borrower passes away, moves away, or sells the property, the loan must be repaid. The reverse mortgage loan, along with accrued interest, is repaid with the proceeds of the sale of the home. In essence, with a reverse mortgage, you are selling the equity in your home back to a lender in increments. The majority of reverse mortgages are Federal Housing Administration (FHA) loans under the Home Equity Conversion Mortgage (HECM) program. If you want to reduce your interest payments and lower your debt, join MoneyTips and try our free Debt Optimizer tool. There are no property restrictions for a HELO; thus, you can use a HELO for non-FHA approved condominiums and other unique properties. HELOs have a few important restrictions that HECMs don't have. Properties must be worth at least $350,000 to qualify, and two appraisals are required if the property's value is greater than $2 million. More importantly, make sure that a reverse mortgage is the best financial product for you.

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Understanding How Millennials Respond To Your Marketing Efforts

How do you market to a generation that lives and works differently than any other generation before it? That’s the challenge that digital marketers are currently facing when it comes to grabbing the attention of the generation known as Gen Y, the selfie generation, the always-on generation or, the term most commonly used, millennials. Here’s what we know about millennials. Millennials are expected to be America's largest generation by 2019, which means they make up a fair share of the marketing audience. Millennials shop differently than past generations. The millennial generation knows how to take advantage of technology to get the best quality for the best price. I’ve also learned that millennials are social media mavens. When they have a great experience with a product or service, they’re happy to let their peers know about it on social media. Millennials have caught on to the idea that most stores will price match, so they have come to expect it. Businesses that actively support and promote a greener economy will get millennials to take a breather from scrolling and learn more about what the company has to offer.