Converting your IRA to a Roth = a great opportunity
Posted On: July 13th, 2010 by James Posted In: Financial Health • Government Actions
File this one under: “Check with your financial planner and tax adviser before taking action”.
So now that the Lebron’s choice episode is behind us we can focus on another reason why 2010 is a unique moment in our financial lives. This year there is a moratorium on the Roth IRA rules. If you are in a higher tax bracket, you’ve been shut out of the Roth IRA party, until now. This year, ANYONE can convert an existing IRA into a ROTH IRA. There are 2 major consequences to doing this:
- whatever portion of the balance you convert will be considered taxable income for this year.
- The balance you convert will be able to grow and compound into the future, and when you go to withdraw this money, you will do so TAX FREE!
HERE’S WHAT I THINK ABOUT TAX FREE RETIREMENT ASSETS
Continue Reading – Converting your IRA to a Roth = a great opportunity
Mortgage Rate Apocalypse
Posted On: June 23rd, 2010 by James Posted In: Mortgage Rates • Refinancing
From the industry that has been “crying wolf” for the last I don’t know how many years about “low low rates”, I know that this is just more noise. I have been trying to figure out exactly how to describe what is happening lately in the fixed rate mortgage marketplace. Because rates usually move in step with the general state of the economy (economy good= rates go up, economy bad= rates go down) we’ve been in a VERY low mortgage rate market for most of 2010, and late 2009. I know that certain radio advertisers have been pimping the so called “rate of a lifetime” every 15 minutes for going on 3 years now, to the extent that the urgency has been drained completely. Well I’m here to tell you that today the FNMA 4% bond coupon that we use to track pricing has just hit the highest level in history.
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Gift Funds for a Down Payment: What to Expect
Posted On: June 18th, 2010 by James Posted In: FHA Mortgage • Mortgage Programs
Most home buyers bring some kind of down payment to the table in a real estate purchase.
The money down can come from any variety of sources, and a very common source of funds is that of the “family gift”.
Different loan programs have different requirements when using gift funds as the down payment. Most lenders will require there to be a legitimate and verifiable family relationship between the donor and recipient. The FHA mortgage allows for the ENTIRE balance of cash due to be from a family gift, whereas conforming agency loan programs will require the borrower to have 5% of his own funds in the deal if the down payment is less than 20% (if the down payment is 20% or greater, conforming loans will allow the full balance of the down payment to be from a gift).
So here comes the tricky part – HOW TO DOCUMENT THE TRANSFER OF GIFT FUNDS
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Refinancing Could Be Easier Than You Think
Posted On: June 14th, 2010 by James Posted In: Mortgage Programs • Mortgage Rates • Refinancing
With interest rates absolutely plummeting and apparently staying low for some time here, I really want to get a message out to the huge contingent of people who feel like they WON’T qualify for a mortgage, or a refinance. I have had many conversations with clients in recent weeks who seem to be in disbelief that they should refinance. Perhaps they just refi’d a year or so ago, and don’t want to take on another load of closing costs.
For borrowers who find themselves in this position, I only suggest a “no-closing cost mortgage refinance”. This will potentially get them a lower rate without any upfront costs, and put them in an immediate cash flow win.
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Good Politics, Bad Policy: Take Action Now
Posted On: June 3rd, 2010 by James Posted In: Financial Health • Government Actions
There is a new Senate Bill that has recently been turned loose out of committee, and I believe that it is potentially disastrous for the Mortgage industry as we now know it.
The area of concern is amendment (SA. 3962) offered by senators Merkley (D-OR) and Klobuchar (D-MN) to S. 3217, the “Restoring American Financial Stability Act of 2010.” First let me start by saying that I’m personally ALL FOR financial stability, who isn’t? This Act is DEFINITELY passing later this year. Think of it like a political battleship that is unsinkable, floating through the rivers of congress. Every congress person is attempting to toss little bits and pieces of legislation onto the boat as it is certain to be approved into law. This amendment is one of those toss on pieces, and here is the gist of what it is trying to do:
Continue Reading – Good Politics, Bad Policy: Take Action Now
