Year-End Tax Tips for Senior Citizens

Here are some great tips I found on the RISMEDIA website with some money saving tax tips for seniors. 

1. Take a Senior Citizen Deduction

The IRS allows those age 65 and over to take an additional deduction worth $1,350 for single filers or $2,100 for a married couple. This also applies to individuals who do not itemize their deductions because it is added to their standard deduction.

2. Claim Stock Losses Now

Those seniors with stock losses should consider taking them before year-end. Losses are used to offset any stock gains, including gain distributions from mutual funds. In addition to offsetting gains, seniors can claim up to $3,000 in losses per year to effectively reduce taxable income for 2008. Any losses in excess of that amount are carried forward to future returns.

3. Seniors Seeking Cash Should Consider a Reverse Mortgage

Income earned from a reverse mortgage is tax free, meaning that seniors in need of cash can unlock the equity in their homes as a lump sum payment in 2008 with no tax implications. A reverse mortgage remains a viable financial tool for those 62 and older because it does not take into account credit history or a borrower’s current financial situation.

4. Pay Outstanding Medical Bills Now

An individual with either a low taxable income or large medical expenses should consider paying all outstanding medical bills before the end of the year as an additional deduction. This would include supplemental health insurance, doctor bills, hospital bills and prescription drugs. Eligible deductions also include medical mileage, the number of miles traveled to and from the doctor, pharmacy, or hospital.

5. Be Aware of Social Security Income Threshold

Those senior citizens who continue to work while drawing social security should be aware of mandated income thresholds. If income exceeds $25,000 for one person or $32,000 for a married couple, then social security begins to be counted as taxable income. This can be a large burden on senior citizens. If a senior is close to these income limits, they should consider pushing some income into next year to protect all of their social security from income taxes.

6. Understand IRS Rules for IRAs

The IRS requires taxpayers to begin withdrawing funds from their IRA’s in the year after the year they turn 70 and one half. In most cases, seniors should begin withdrawals in the year they turn 70 and one half. By waiting until the following year, seniors would be required to make two withdrawals, potentially entering them into a higher tax bracket.

“Senior citizens are being squeezed like never before and need to take advantage of any savings available to them,” said Eric Bachman, founder and CEO of Golden Gateway Financial, a comprehensive online financial resource for seniors and retirees. “With a few savvy moves, senior citizens can save themselves hundreds and even thousands of dollars in income taxes.”

“Older Americans need to be aware of the benefits made available to them by the IRS,” said Duhe, a certified public account and principal of Jeanne S. Duhe, LLC. “These are effective ways to save money in order to extend existing budgets even further.”

As one of only 10 Senior Real Estate Specialists (SRES) in Fort Collins, I try to provide valuable tips for our growing, mature population in Northern Colorado.

My blog has reached over 20,700 views thus far…thanks for the interest! 

Your friend in real estate,

Mike Malvey

Fort Collins First Night Festivities 2008-09

This is information from the Downtown Business Association.  Have fun and be safe.  Please don’t drink and drive…make arrangements before heading out on how you will get home with a sober driver…see you next year!

First Night®   Fort Collins 2009

 

 

Buttons go on sale December 20th, 2008 at all Fort Collins and Loveland King Soopers, The Downtown Visitors Center (Old Town Square) and the Lincoln Center Box Office. 
 

New Year’s Eve- December 31st, 2008 – Come join in the fun downtown for the 13th annual First Night Fort Collins 2009! Enjoy the wonderful and diverse entertainment presented at this non-alcoholic New Year’s Eve celebration. First Night Fort Collins 2009 promises new performing acts, storytelling, history, interactive craft projects, old favorites, street performers, international dancing and much more. This year’s lineup brings acts and performers together for enjoyment by all ages in this unique collection of talent and entertainment. 

 

Where else can you see the best of the TriMedia Film Festival, enjoy original local theater, be amazed by magicians or learn the secrets of the stars through storytelling and science?  Music fans can experience an exciting global musical tour by attending some of the acts sponsored by First Night’s official music sponsor, Bohemian Foundation. This year the music program offers a diverse selection including Australian Didgeridoo music, Celtic ballads, instrumental brass medleys of “space” movies soundtracks including Star Wars & The Jetsons, Latin canciones del las estrellas, classic Western music, and hands on percussion.

 

ENTERTAINMENT LINEUP: SEE Full Lineup Here! The evening’s revelry will kick off with confetti and song with the Kids’ Countdown at 5:00pm at the Fort Collins Museum (200 Mathews St.), all venues open at 6:00pm and the night concludes with a festive display of fireworks in Old Town Square at 10:30pm.  This year, enjoy special big screen showings of E.T. The Extra Terrestrial. Relive this fully restored 1982 classic! A loveable sci-fi movie to warm your heart and make you laugh! This film is a winner of 3 Academy Awards, directed by Steven Spielberg and debuts a very young Drew Barrymore.  

 

 

BUTTONS: Admission to First Night Fort Collins requires the purchase of a $10 button, with children 6 and under free when accompanied by a paying adult.  There are a limited number of buttons on sale this year, only 3,500 will be sold for First Night Fort Collins 2009!!!  Buttons go on sale December 20th at all Fort Collins, Windsor and Loveland King Soopers, Ben & Jerry’s Ice Cream Downtown and the Lincoln Center Box Office.

 

SCHEDULES:   Detailed information about the event, performances and times can be found on the official button card (with button purchase) and in the official First Night Fort Collins program published on December 24th in Fort Collins Now. SEE FULL PERFORMER DESCRIPTIONS HERE!

VOLUNTEERS NEEDED! If you would like to give your time to make this event a success please call (970) 484-6500 or e-mail us at:   info@downtownfortcollins.com

Arrive early! First Night Fort Collins 2009 is filled with entertainment for everyone. Performance seating is on a first-come, first-serve basis. Please have a back up plan if the performance is full. Building capacities will be enforced.

 

Thank you to our wonderful First Night Fort Collins 2009 sponsors:

 

Official Music Sponsor: 

Bohemian Foundation

 

Presenting Sponsors:

Dellenbach Subaru

Beet Street

Coca-Cola

Clear Channel Communications

 

Contributing Sponsors:

Fort Collins Now

Burt’s Shirts

Transfort

Required Forms by Colorado Mortgage Brokers

Mortgage Broker Forms – Part 2

Colorado Lock in Disclosure Form

• Discloses rate and terms
• Is the rate locked?
• Must be completed any time the APR varies by 1/8 of a percent.

The mortgage broker shall disclose the terms of the loan and the lock-in within three business days after receipt of a loan application or moneys from a borrower.  This includes disclosure of the rate, payment type, term, and whether the rate is locked.  This disclosure also includes the length of time and cost of any prepayment penalty.  The Colorado Lock-in Disclosure Form is used to ensure that the lock-in information is clearly and concisely disclosed.  This is the recommended form, but an alternate form can be used as long as it includes all the required information.

a. Once the borrower enters into a lock-in agreement, the mortgage broker must deliver or send the lock-in agreement by first-class mail to the borrower in no less than three (3) business days after the agreement is signed. This includes Saturdays and prior to the borrower closing on the loan.

b. If the annual percentage rate varies from the annual percentage rate disclosed earlier by more than one-eights of one-percent, the broker shall, within three business days, deliver to the borrower a completed lock-in disclosure.

 

Mortgage Broker Forms – Part 3

Colorado Mortgage Broker Compensation Form

• Discloses amount of commission and how that is calculated
• Both “front end” and “back end” compensation shall be disclosed
• Range shall be within one percentage point of the loan transaction

Broker Compensation Form: Mortgage brokers shall disclose the amount of commission or other compensation to be paid to the mortgage broker, including the manner in which such commission or other compensation is calculated and the relationship of such commission or other compensation to the cost of the loan received by the borrower.   The Colorado Compensation Disclosure Form is used to ensure that this information is clearly and concisely disclosed.

a. Mortgage brokers shall disclose to the borrower all of the front end and back end compensation for the transaction.  Annual salaries are not required to be disclosed.

b. Only when the dollar amount of such compensation cannot be determined, may mortgage brokers disclose a range.  Such range shall be disclosed in a dollar amount and range that shall not exceed one (1) percentage point of the loan transaction.

i. “Front end compensation” means the compensation charged to the borrower that inures to the benefit of the mortgage broker and the mortgage company for which the mortgage broker is an officer, partner, member, contractor, independent contractor, exclusive agent, or employee. Front end compensation includes, but is not limited to loan origination fees, administrative fees and processing fees.

ii.  ”Back end compensation” means the compensation paid by the funding lender that inures to the benefit of the mortgage broker and the mortgage company for which the mortgage broker is an officer, partner, member, contractor, independent contractor, exclusive agent, or employee. The back end disclosure will include yield spread premiums, cost to sell the loan, etc.

 

Mortgage Broker Forms – Part 4

Tangible Net Benefit Disclosure Form

• Mortgage Brokers must make a reasonable inquiry concerning income
• Law prohibits mortgage brokers from recommending that borrowers enter transactions that do not have a “tangible net benefit to the borrower”

Reasonable Inquiry and Tangible Net Benefit

Mortgage brokers have a duty of good faith and fair dealing in all communications and transactions with a borrower.  This section requires mortgage brokers to make a reasonable inquiry concerning the borrower’s current and prospective income, existing debts and other obligations, and other information known to the mortgage broker, and after making such inquiry, to make his or her best efforts to recommend, broker, or originate a residential mortgage loan that takes into consideration the information submitted by the borrower. It is both the borrower and mortgage broker’s responsibility to ensure that the loan is beneficial to the borrower.

Mortgage brokers are responsible for having the Tangible Net Benefit Disclosure form completed.

The Tangible Net Benefit Disclosure form shall be completed at application and again if the tangible net benefit changes during the mortgage transaction.

I hope this blog provides insight into the requirements your mortgage lender/broker should be sharing with you.  Please contact me if you have questions.

Thanks for reading by blog…now over 20,000 views!!  I appreciate your interest. 

 

 

Fort Collins Home Statistics From 2004 to Today!

 Here are the Fort Collins home sales for 2008 through December 10, 2009.  I’ll update this in January for a complete review of 2008 and how it compares to the previous years.   See the charts below this 2008 information for the years 2004-2007. 

Statistics for Fort Collins

Prepared 12/10/2008

1 Qtr. (2008)
Category	# Sold	Sales Volume	Avg Price	Median Price*
Residential	473	133,499,635	282,240	228,900
Attached	126	20,639,979	163,809	145,000
Income	11	3,364,950	305,904	255,000
Lease	7	954	136	N/A
Commercial	5	5,280,500	1,056,100	750,000
Vacant Land	52	9,209,961	177,114	85,500
Farms	0	0	0	0

2 Qtr. (2008)
Category	# Sold	Sales Volume	Avg Price	Median Price*
Residential	808	222,497,925	275,368	233,500
Attached	259	40,984,766	158,242	148,014
Income	8	2,804,000	350,500	227,000
Lease	6	4,412	735	N/A
Commercial	4	1,040,000	260,000	N/A
Vacant Land	45	8,250,280	183,339	82,000
Farms	0	0	0	0

3 Qtr. (2008)
Category	# Sold	Sales Volume	Avg Price	Median Price*
Residential	744	206,641,320	277,743	235,469
Attached	185	29,980,028	162,054	157,000
Income	8	2,319,300	289,912	200,800
Lease	6	6,599	1,099	N/A
Commercial	2	785,000	392,500	N/A
Vacant Land	62	7,078,466	114,168	51,500
Farms	0	0	0	0

4 Qtr. (2008)
Category	# Sold	Sales Volume	Avg Price	Median Price*
Residential	306	78,885,633	257,796	229,900
Attached	72	13,540,115	188,057	160,000
Income	6	2,442,500	407,083	225,000
Lease	2	2,045	1,022	N/A
Commercial	4	1,919,500	479,875	N/A
Vacant Land	25	2,023,650	80,946	57,000
Farms	0	0	0	0

Here are the annual statistics from 2004-2007 and how they compare with the previous year.  This is great information to see trends in our local real estate market.  Please let me know if you would like more specific information about your home…simply email me: BostonMike@MikeMalvey.com and ask me for more detailed information about your home.

2007
Category	# Sold	Sales Volume	Avg Price	Median Price*	% Diff Prev Yr
Residential	2876	789,410,135	274,481	235,000	2.2
Attached	743	127,744,172	171,930	155,000	- 0.6
Income	56	22,296,502	398,151	255,000	- 8.3
Lease	28	4,380,663	156,452	N/A	- 96.0
Commercial	49	26,213,241	534,964	335,000	26.4
Vacant Land	307	38,331,548	124,858	80,000	3.6
Farms	4	2,083,957	520,989	N/A	- 55.1
TOTAL	4072	1,010,747,468

2006
Category	# Sold	Sales Volume	Avg Price	Median Price*	% Diff Prev Yr
Residential	2927	794,992,249	271,606	230,000	0.1
Attached	785	129,381,804	164,817	156,000	- 0.8
Income	65	20,493,729	315,288	278,100	4.0
Lease	38	2,606,026	68,579	N/A	2243.8
Commercial	41	19,177,041	467,732	265,000	- 11.7
Vacant Land	369	50,890,436	137,914	77,250	- 1.0
Farms	10	9,745,000	974,500	690,000	- 43.0
TOTAL	4244	1,027,514,785

2005
Category	# Sold	Sales Volume	Avg Price	Median Price*	% Diff Prev Yr
Residential	3102	827,371,980	266,722	229,865	4.2
Attached	905	155,175,301	171,464	157,281	- 0.5
Income	60	18,200,125	303,335	267,500	0.4
Lease	28	3,005,795	107,349	N/A	- 20.0
Commercial	52	34,061,373	655,026	300,000	20.0
Vacant Land	399	60,763,066	152,288	78,000	9.1
Farms	6	7,895,000	1,315,833	1,210,000	324.6
TOTAL	4558	1,106,647,140

2004
Category	# Sold	Sales Volume	Avg Price	Median Price*	% Diff Prev Yr
Residential	3102	786,627,122	253,587	220,500	-
Attached	999	159,695,747	159,855	158,000	-
Income	63	22,751,900	361,141	266,500	-
Lease	36	1,015,768	28,215	N/A	-
Commercial	45	18,966,456	421,476	250,000	-
Vacant Land	394	46,880,188	118,985	71,500	-
Farms	3	1,230,500	410,166	N/A	-
TOTAL	4651	1,037,334,131

* Median not calculated for fewer than 5 listings

Source: IRES, LLC database

                                                                               Data pulled on 12/11/08

Thanks for taking my blog readership above 19,600!  As always your comments and suggestions are greatly appreciated.

Buyer Tips to Raise Your Credit Score

According to Bankrate.com, today’s interest rate for a 30-year fixed mortgage is 5.7%.  There are rumors swirling that the interest rate could decrease, and potentially a significant decrease, but there aren’t any guarantees that will actually happen.

Even at 5.7%, this a great opportunity for home buyers and especially first time buyers.  Now some buyers might be waiting to see if the rates will drop but that is something that none of us has any control of.  However, something that each of us does have control over is helping to increase our own credit score. 

Wouldn’t you like to be able to increase your credit score?  Why wouldn’t you? 

By increasing your credit score, you could get a better interest rate, you could be eligible for a lower down payment (and possibly zero down) and be able to either buy a more expensive home or have a lower monthly payment for the same house just because you increased your credit score!  If you don’t want to save money then stop reading now…but if you are curious about how to raise your credit score then check out my quick tips on how to do it.

• Review your credit report and dispute everything that is inaccurate.  You can have a responsible lender help you with this for FREE!
• Pay down your revolving debt which are credit cards.  You don’t want to pay them off completely but you want to pay them down far enough that your balances are below 30% of your credit limit on each card.  Do not cancel any cards without talking with your mortgage professional first as that could hurt your credit score.
• Make sure your credit card limits are being accurately reported to the three major credit bureaus.  If your account does not have the correct limit then it may appear to be maxed out and this could ding your credit score up to 80 points.

These are just a few simple tips to help increase your credit score.  I suggest talking with your mortgage professional and have your credit report reviewed to see how you can increase your score and put money back in your pocket.

Thanks for reading…over 19,500 readers have come to my blog in the past year!!  Thanks so much.

Your friend in real estate…Mike Malvey

Required Disclosures of Mortgage Brokers in Colorado

Mortgage Broker Disclosures

Within three business days of loan application or receipt of borrower funds, lender must disclose in writing:

• Annual Percentage Rate (APR)

• Finance Charge

• Amount Financed

• Total payments

• Third party costs

• Terms of a lock-in agreement

• Transfer documents

These details include, but are not limited to, annual percentage rate, finance charge, amount financed, total amount of all payment, closing costs, third party costs, terms of a lock-in agreement, and transfer documents. The rule promulgated by the Division of Real Estate (DRE) is available online for you to review.

In June 2007, Governor Ritter signed into law new mortgage broker bills for licensing and enforcement.

Mortgage Broker Disclosure: Mortgage brokers must, within three business days after receipt of a loan application or any moneys from a borrower, disclose, in writing, specific details of a loan transaction to the borrower. Any moneys received from a borrower must be held in a trust account.

The Director of the Division of Real Estate states that mortgage brokers can disclose third party costs and feed in the good faith estimate and in the Truth in Lending as an acceptable means of disclosure.

A mortgage broker shall not charge any fee that exceeds the fee disclosed on the written disclosure unless the mortgage broker has provided to the borrower, no less than three business days before settlement, a clear and written explanation of the fee and the reason for charging a fee exceeding that which was previously disclosed.

Please be sure to use a reputable lender that was referred to you by a trusted friend, family member or realtor, to name a few sources.  Make sure you get everything in writing and don’t be afraid to ask why something changed.

I hope you found this blog helpful.  I’ve reached over 19,000 views on my blog site!  That is simply amazing to me.  As always, your feedback and comments are greatly appreciated.  Thanks for the read!

Your friend in real estate (Fort Collins)…Mike

Mortgage Rates DROP to Lowest Level Since January 2008

 Freddie Mac reported today (Dec. 4, 2008) that average rates on 30-year fixed-rate mortgages dropped to 5.53% in the largest one-week drop in 27 YEARS!!  Talk about your economic stimulus!  Last week the rate was at 5.97% and it is now at the lowest percentage since the week of January 24, 2008 when it was at 5.48%.

Here is a table I created 3 months ago to compare the monthly $$ savings when the rates dropped from 6.5% to 5.93%.  The savings now with these lower rates will be substantially lower.

Further drops could, but certainly not guaranteed, be on the way if the government launches an industry-backed plan to lower the rate on a 30-year mortgage to 4.5 percent by spending hundreds of billions to buy mortgage-backed securities issued by Fannie Mae and Freddie Mac.

That would follow an effort announced last week by the Federal Reserve, which is planning to purchase up to $600 billion of mortgage-backed securities and other debt issued by Fannie and Freddie and the Federal Home Loan Banks. Those institutions don’t make loans directly to consumers, but provide money to the mortgage market by packaging loans into investments.

Bringing mortgage rates down is positive, but it “doesn’t help people that currently have unaffordable mortgages because it doesn’t help them refinance,” Sheila Bair, chairman of the Federal Deposit Insurance Corp., said Thursday. “Low interest rates help some consumers, but the ones that really need help and can’t refinance are not helped.”

These low interest rates should help all home buyers, whether first time buyers, empty nesters or move-up buyers.  This could also have a positive affect on home sellers because the pool of approved and capable buyers will increase creating a higher demand on homes.  In Fort Collins, the supply of homes is lower than it has been in months so sellers could find this to be a great opportunity to sell their home.

According to the Mortgage Bankers Association’s weekly survey released yesterday, December 3, 2008, consumers are taking advantage of the situation as new mortgage applications more than doubled last week, refinance volume more than tripled and made up nearly 70% of all applications.

Rates on other types of mortgages also fell, according to Freddie Mac’s survey. For 15-year, fixed-rate mortgages, rates averaged 5.33 percent, down from 5.74 percent last week.

Rates on five-year, adjustable-rate mortgages dipped to 5.77 percent, compared with 5.86 percent last week. Rates on one-year, adjustable-rate mortgages dropped to 5.02 percent, from 5.18 percent last week.

A year ago, the nationwide average rate on 30-year mortgages stood at 5.96 percent, 15-year mortgage rates averaged 5.65 percent, five-year adjustable-rate mortgages were at 5.75 percent, and one-year adjustable-rate mortgages stood at 5.46 percent.

I hope you found this information helpful.  If you know of someone that could benefit form this information, would you please forward this blog to them?

If you are curious about Fort Collins homes for sale, visit www.SearchFortCollinsMLS.com. 

If you are interested in condos, townhomes and lofts in Fort Collins then visit www.FortCollinsKiddieCondos.com and request your one-of-a kind buyer’s guide…it’s a must have for first time buyers!

My blog has now surpassed 19,000 views so thank you for your support!  Thanks for the read and have a great day!

First Blast of Winter in Fort Collins

Fort Collins received its first dose of winter overnight (December 3, 2008) as we received between 4-5 inches of light, fluffy snow.  It was just enough to slow things down as folks needed extra time to shovel before heading off to work.  My kids loved it and so did our golden retriever!  The temperature was in the upper 60’s just two days ago on Tuesday and now we are shin deep in snow with the forecast calling for temps in the 50’s this coming weekend before another cold snap comes through.  We were getting spoiled with the warm temps for the past month so this is a nice reality check…because afterall it is DECEMBER in Colorado!!