Home Buying 101 Archive


How are individual tax bills figured?

Wednesday, November 28th, 2007
Unlike the income tax and the sales tax you pay, the property tax is not based on how much money you earn or how much you spend. It is based solely on how much the property you own is worth. ...
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Why do homeowners have to pay property taxes?

Wednesday, November 28th, 2007
Property taxes are assessed by city and county governments to generate the bulk of their operating revenues. The taxes help pay for such public services as schools, libraries, roads, and police protection. ...
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Are there tax credits for first-time homebuyers?

Wednesday, November 28th, 2007
Yes, thanks to the many city and county governments that offer Mortgage Credit Certificate (MCC) programs, which allow first-time homebuyers to take advantage of a special federal income tax write-off. The credit reduces the amount of federal taxes paid by the buyer each year, if he keeps the same loan ...
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Are fees and assessments owed a homeowner’s association deductible?

Wednesday, November 28th, 2007
Generally not because they are considered personal living expenses. But if an association has a special assessment to make capital improvements, condo owners may be able to add the expense to their cost basis when the property is sold. Another exception may apply if you rent your condo---the monthly condo ...
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Are up-front fees and closing costs deductible?

Wednesday, November 28th, 2007
Many of the costs paid at closing are not immediately deductible. ...
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How can owning a home pay off at tax time?

Wednesday, November 28th, 2007
A home provides many tax benefits, literally from the time you buy to the time you sell. The mortgage interest paid on a home loan up to $1 million for a primary residence or second home is tax deductible every year, as is the local property tax. Other mortgage costs---including ...
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Is there anything I should know about closing day?

Wednesday, November 28th, 2007
Yes. The following to-do list can help save you a few headaches and keep the closing on track: ...
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Is it possible to save on closing costs?

Wednesday, November 28th, 2007
Certainly, once you get pass the sticker shock. Closing costs are expensive. They can average between 2 to 3 percent of the total home purchase price. But here are a few ways to save: ...
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What are closing costs?

Wednesday, November 28th, 2007
Closing, or settlement, costs are expenses over and above the price of the property. Both the buyer and seller incur some of these expenses when transferring ownership of a property. Who actually pays, however, often depends on local custom and what the buyer or seller negotiates. Closing costs normally include ...
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Do I need an attorney to buy a home?

Wednesday, November 28th, 2007
A lot depends on the state where the property is located. Some require an attorney; others do not. ...
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