standard refinance paying off an existing mortgage with the proceeds
from a new loan. In order to decide whether this is worthwhile, the
savings in interest must be weighed against the fees associated with
refinancing. Other reasons to refinance include reducing the term of a
longer mortgage, or switching between an adjustable-rate and a
Acash-out refinanceis taking a loan for more than you owe on your existing
mortgage. Your existing mortgage is paid off from the new loan proceeds
and you receive the balance of the new loan.
Will you pay tax on the sale of your home? Likely not, unless you
have gains that are more than $250,000 or more than $500,000 for married
Until 1997, once you reached the age
of 55, you had the one-time option of excluding up to $125,000 of gain
on the sale of your home providing it was your primary residence.
Now, anyone, regardless of age, can excludeup to $250,000
of gain or $500,000 for a married couple filing jointly on the sale of a home.
That means most people will pay no tax unless they have lived there for less than 2 out of the last 5 years
There are many reasons you may want to add someone to the title of your
home. Maybe you just got married and would like your new spouse listed as part
owner of your home. Or you may want to add an adult child to your title
for estate planning purposes.
Whatever the reason, you will need to retain an attorney, experienced in
real estate, to draft a new deed conveying your home to yourself
and the person you wish to add to your title. In addition to the deed,
your attorney will also need to prepare transfer tax returns.
On October 3, 2015, the Consumer Financial Protection Bureau’s (CFPB) new
mortgage disclosure law, also known as the TRID went into effect. TRID will
help consumers be more informed regarding the closing cost.
things you should know about the new law:
1. Initial Good Faith Estimate (GFE) and Truth in Lending disclosure (TIL)
are now combined into one new form called the Loan Estimate (LE).
2. Instead of the old forms such as the HUD-1 and Final TIL we now have the
Closing Disclosure (CD).
I am often asked by clients looking to transfer property whether I will be using a quitclaim deed to complete the transfer. I tell my clients that in the New York Metropolitan area, the type of
deed customarily used to convey real property, whether to a third party
in an arm’s length transaction or to a family member, is a “Bargain and
Sale Deed with Covenants Against Grantor’s Acts.”
A quitclaim deed must to used with caution and can be dangerous or beneficial depending upon whether you are the grantor or grantee.