Refinancing Your San Luis Obispo Property...

Refinancing Your San Luis Obispo Property... 

San Luis home owners who missed the refinancing opportunity when rates were in the high 3%'s should consider refinancing in the next couple of months to lock in a lower rate. Interest rates are still at an all time low and the opportunity is presenting itself again!

Kevin Hauber, Senior Loan Consultant with iMortgage here in San Luis Obispo says;
"Current loan limits in San Luis Obispo County allow for high balance loans of up to $687,500 for conventional and FHA loans on one unit properties.  Those limits will go down effective October 1st to $561,200.  It is important for any buyers or those wishing to refinance with a loan amount between this new limit of $561,200 and the current limit of $687,500 to conclude their transactions before the change becomes effective.  After that time, higher balances will be considered Jumbo loans and subject to different criteria and pricing."

For more info on Refinancing your San Luis home call Kevin Hauber (805) 597-8844




For more information or questions on Real Estate give Traci a call 805-235-6396 or email me.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 Patterson Realty traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Buying a Home in San Luis - Tax Benefits

As a home buyer in SLO you have tax benefits that will save you money every year. Your mortgage interest and real estate taxes are tax deductible and anyone with a mortgage can enjoy this tax benefit.

During the early years of the home mortgage, most of your monthly repayments go towards your interest, with little payment towards the capital. Tax benefits are therefore very useful for first-time home buyers, especially during the early years of acquiring the mortgage. The early part of your mortgage payment is primarily paying on the interest of your loan. This interest payment is fully tax deductible. As you pay more on the amortized home mortgage over a longer time frame, more of each monthly payment goes towards paying the principle, and less towards interest. This means that with time, you lose some of your interest write-off as your equity in the property increases.

It is important for you to note that you can take these tax deductions if you change from standard deduction, which all tax payers are entitled to, to itemized deductions. In the case where your itemize deductions, including home mortgage interest and property taxes, do not exceed the standard deduction amount, it is better for you to take standard deduction.

The following three components of your home mortgage are tax deductible:

1. Interest on your home mortgage
2. Property taxes
3. Loan points for a purchase mortgage fully deductible in the year that they are paid. It is noteworthy that in refinance, the points are written off in increments over the term of a home mortgage. (See my blog post on When to pay down points)

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Visit my Mortgage Calculator page filled with additional information.
For more information about Real Estate on the Central Coast, please contact Traci Ferguson by E-mail or by phone directly at 805-235-6396.