Some Very Inexpensive tips to selling your home...

The selling season is here and I wanted to post these very inexpensive tips for helping to sell your home. These also will not take you a lot of time. For more ideas get in touch with me at www.MarylandHomesbyLynn.com   

• Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.
• Wash your windows and screens to let more light into the interior.
• Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.
• Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.
• Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.
• Make minor repairs that can create a bad impression. Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they'll give buyers the impression that the house isn't well maintained.
• Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.
• Patch holes in your driveway and reapply sealant, if applicable.
• Clean your gutters.
• Polish your front doorknob and door numbers.

Thanks for stopping by today and again visit us at www.MarylandHomesbyLynn.com

Fannie Extends Closing Cost Incentive to Buyers

Great incentive, contact me today if you are interested. In order to get the closing cost help on one of these properties the house must settle before June 30, 2014. Contact us today at www.MarylandHomesbyLynn.com

Keosha Burns

WASHINGTON, DC – Today, Fannie Mae (FNMA/OTC) announced it is extending the 3.5 percent closing cost assistance incentive for HomePath® properties purchased during the FirstLookTMperiod in 27 eligible states. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase a home without competition from investors.  The FirstLook period is in effect for the first 20 days a property is on the market.  

“We have received a strong response from the incentive since it went into effect on February 14, and we are happy to extend the offer to even more homebuyers,” said Jay Ryan, Vice President of REO Sales. “With the unusually cold and extended winter season ending, we want to give people more opportunity to use the incentive to buy properties that they will call home.”

To be eligible for the incentive, the initial offer must be submitted by April 30, 2014, and close on or before June 30, 2014. The incentive will offer qualified buyers up to 3.5 percent of the final sales price to pay closing costs. In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time. Buyers can work with the lender of their choice to determine if this is an option.

Prospective buyers can search for properties and easily identify how many days remain on a property’s FirstLook period by visiting www.HomePath.com. Each qualifying property will be identified by the sales incentive icon. HomePath properties offer buyers a wide selection of options, including single-family homes, condominiums, and town houses. For more details on the program, visit www.HomePath.com. The 27 states where the incentive is available are:

Arizona	Maryland	New Mexico
California	Massachusetts	Ohio
Florida	Michigan	Oregon
Idaho	Minnesota	Puerto Rico
Illinois	Missouri	Tennessee
Indiana	Nebraska	Virginia
Iowa	Nevada	Washington
Kansas	New Hampshire	West Virginia
Maine	New Jersey	Wisconsin

Click here to read the original announcement for the sales incentive.

Want a Chance to Win $50,000??

  You could win $50,000 just by downloading my KW app to your phone, not to mention this is a great search engine for homes. If you are in a neighborhood, you can see what homes are for sale right where you are at, or make up a search. Best of all there is no charge to you. Just click on the photo and it will take you to the website where you can download the app, you can also go to www.LynnNicholsApp.com. Thanks for stopping by today.                                                        

                                                                            

Find the Value of Your House

Would you like to find the value of your house??? Lynn Nichols Real Estate will give you a free CMA. Just go to www.FindMyMarylandHomeValue.com, just fill in the information and we will send you a free report. With inventory being so low if you are thinking about selling now is the time. If you have any questions just please contact us.

5 Low-Cost Kitchen Redos Buyers Will Love

With the Spring almost here, it is time to get your house in the market. The kitchen is one of the most important places to make sure it is looking sharp. Besides having it very clean, here are some items that will just make it pop and lot better. If you are looking to sell your house please call us, we don't put your house on the market, we put it in the market. Feel free to start the process by receiving a free CMA on your property go to www.FindMyMarylandHomeValue.com

Kitchens are one of the features buyers compare most closely when they’re shopping for a home. Here are cost estimates for some of the low-cost kitchen upgrades that listing agents often recommend to sellers:

1. Hardware.
Replacing cabinet hardware, such as handles, knobs, and hinges is a quick, DIY way to enhance kitchen space. According to HouseLogic.com, an average kitchen is 200 square feet with 30 linear feet of cabinetry, which equates to about 40 handles and knobs. Averaging between $2 and $20 per knob or pull, a home owner can expect to spend from $80 to $800 for this enhancement.

2. Faucet.
There are myriad options today in terms of height, spouts, pullout hoses, and folding necks, with quality faucets starting at around $200.

3. Lighting.
Adding an LED undercabinet light can have a dramatic effect for about $40.

4. Organization.
Buyers today choose functionality over elaborate decoration, says Jamie Goldberg, a National Kitchen & Bath Association–certified designer. Practical storage in the kitchen will go a long way. Over-the-door hooks, baskets in the pantry, drawer organizers, wall hooks for pots and pans, and stackable shelves for cabinets will add appeal, typically for less than $100.

5. Countertops.
Laminate can mimic the contemporary look of granite at a significant discount. The cost for an average kitchen with 30 linear feet of laminate countertop is roughly $1,575; the same space in granite would be about $2,400.

Thanks so much for stopping by today and again visit us at www.FindMyMarylandHomeValue.com

Military Children and PCS

At Lynn Nichols Real Estate we work with a lot of military families and realize how hard the relocation can be on a family.I found this article at military.com  that I thought would be helpful to families with an upcoming PCS move. If you have any questions please contact us at www.MarylandHomesbyLynn.com

Moving is a necessary and inevitable part of military life. It is also a very large emotional and physical challenge not only for you but for your entire family.

by Tara Crooks

There is one thing you can count on as a military family. One of the many challenges that you will be faced with on your journey is a Permanent Change of Station (PCS). Moving is a necessary and inevitable part of military life. It is also a very large emotional and physical challenge not only for you but for your entire family.

A PCS is a "moving" experience in more ways than one. No matter how often families change residence, moving brings with it a variety of emotions and situations. It is often times very easy to get caught up in the moving checklist of boxes, cleaning, packing and moving and overlook the emotions that are tied to the transition to a new location. When it comes to your children it is very important that you take the time to allow them to share their thoughts, feelings, and experiences related to the impending move and once you have arrived at your new location.

While children may understand that you’re family is moving their reactions may vary depending on their personality and developmental age. Some children are inquisitive and will want to know “why” every step of the way, some are outgoing and will naturally find friends immediately while others will become nervous, worried, or depressed. Roller coaster emotions are not uncommon. Your child may be thrilled and excited one day, then blue and depressed the next.

Generally speaking, the younger the child, the easier the move. It is important for you to know that most children’s sense of identity is formed by their peer groups and social belonging. The biggest worry that school age children endure is whether they will make new friends and fit in easily at their new school. Cater to satisfy this worry by painting the move in a positive light. If you see your move as an exciting adventure your children will most likely follow your lead.

Moving Tips for Military Children

It is critical that your children have the enough time to say good-bye to the family members and friends they're leaving behind. Encourage them to exchange contact information.

Allow your children to help with separating and packing.

Explain the process of how the move will work and where the military is sending you, how long it will take to get there, and how/when you will find a new home. Keep in mind that small children may have difficulty differentiating a PCS from a parent's deployment. Most questions and fears can be eased when you sit down and have a “moving” conversation with your child. Let children be present on moving day as the boxes are packed and movers take away your belongings.

Make sure children have an opportunity to pick out favorite things to take along on your trip to your new duty station.

Give children a special job on moving “out” and moving “in” day so they feel a valuable part of the process.

Allow children to decide how their new room should be decorated and/or arranged.

Investigate and explore your new neighborhood together. Look for fun and exciting things. Allow them to use a map to explore or write down a list of their favorite things/places and go seek them out.

Make a concerted effort to locate after-school activities where your children can make new friends with similar interests.

Teach your children you’re new address and phone number as soon as you arrive at your new location.

Military Children’s Booklist – Moving

We’re Moving!, by Heather Maisner and Kristina Stephenson When Amy and her family move into a new house, it takes some effort to make it feel like home. Great book for infants and toddlers.

The Berenstain Bears' Moving Day,by Stan Berenstain and Jan Berenstain The Bear family tells their story of when they moved to their tree house in Bear County.

I'm Not Moving, Mama, by Nancy White Carlstrom and Thor Wickstrom When moving day comes, Little Mouse refuses to leave his room.

Who Will Be My Friends?, by Syd Hoff Freddy moves to a new neighborhood and spends the entire book looking for new friends - until he finally finds them.

Alexander, Who's Not (Do You Hear Me? I Mean It!) Going to Move, by Judith Viorst, Ray Cruz, and Robin Preiss Glasser Angry Alexander refuses to move away if it means having to leave his favorite friends and special places.

Let's Move Together, by Carol M. Schubeck This book was written to help children and parents communicate about their feelings surrounding moving and ways to adjust to the big transition.

A New House:  Activity book for 4 - 10 year olds, by Jill Wenzel The games and activities in this book are designed to help children adjust to living in a new house.

The Moving Book: A Kids' Survival Guide, by Gabriel Davis This practical handbook is divided into three sections:  before the move, during the move, and after the relocation.  It contains useful tools for children to stay in touch with their friends, such as an address book and change-of-address postcards.

Footsteps around the World: Relocation Tips for Teens, 2nd edition, by Beverly D. Roman, Dalene R Bickel (Editor) This workbook style text is written for teenagers facing a relocation.  It offers organizational checklists, recommends journaling, and gives communication advice.  Some of the information, specifically websites, is dated (published in 2001).

We really thank and support our military here and even if you are not relocating to Maryland, please feel free to contact us to see if there are any questions you may have.

Lynn Nichols

4 Million Homes Return to Positive Equity

Great news for Home Owners. If you have any Real Estate questions please contact us at www.MarylandHomesbyLynn.com

DAILY REAL ESTATE NEWS 

Rising home prices helped many home owners welcome the return of equity in their homes last year. In 2013, 4 million homes returned to positive equity, bringing the total to 42.7 million, CoreLogic reports in its fourth quarter 2013 Equity Report.

Of the 42.7 million residential properties that now have positive equity, 10 million – or 21.1 percent – have less than 20 percent equity, CoreLogic reports. More than 1.6 million residential properties have less than 5 percent equity.

About 6.5 million residential properties with a mortgage – or 13.3 percent – remained in negative equity territory by the end of 2013.

“The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged home owners were underwater,” says Mark Fleming, chief economist for CoreLogic. “Over the past four years, more than 5.5 million home owners have regained equity, reducing their risk of foreclosure and unlocking pent-up supply in the housing market.”

The bulk of home equity for properties with a mortgage is concentrated at the higher-end of the housing market, with 92 percent of homes valued at more than $200,000 having equity compared to 81 percent of homes valued at less than $200,000, CoreLogic reports.

Five states alone account for nearly 37 percent of the negative equity in the U.S. CoreLogic reports that the following five states have the highest percentage of mortgaged properties in negative equity:

• Nevada: 30.4%
• Florida: 28.1%
• Arizona: 21.5%
• Ohio: 19%
• Illinois: 18.7%

Source: CoreLogic

Again thanks for stopping by today and visit us at www.MarylandHomesbyLynn.com

Lynn Nichols, Your Realtor

Mortgage Rates Reversed Course Last Week

This is great news if you are a someone that is looking to buy a home. Also please search all Maryland Homes at www.MarylandHomesLocator.com                                               

  DAILY REAL ESTATE NEWS |              

After four straight weeks of climbing, mortgage rates inched down this week, offering buyers some relief.

Freddie Mac reports the following national averages with mortgage rates for the week ending March 6:

• 30-year fixed-rate mortgages: averaged 4.28 percent, with an average 0.7 point, dropping from last week’s 4.37 percent average. Last year at this time, 30-year rates averaged 3.52 percent.
• 15-year fixed-rate mortgages: averaged 3.32 percent this week, with an average 0.6 point, dropping from last week’s 3.39 percent average. A year ago at this time, 15-year rates averaged 2.76 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.4 point, dropping from last week’s 3.05 percent average. Last year at this time, 5-year ARMs averaged 2.63 percent.
• 1-year ARMs: averaged 2.52 percent, with an average 0.3 point, holding steady from last week. A year ago, 1-year ARMs averaged 2.63 percent.

Source: Freddie Mac

Thanks again for stopping by today and visit us at www.MarylandHomesLocator.com

Looking for a New Home???

Are you looking for a new home??? Then take a look at www.MarylandHomesLocator.com,                                                              there you can start your home search...

Thanks for stopping by today,

Lynn Nichols

12 Tips for Hiring a Remodeling Contractor

Attention Home Sellers to be, getting your house ready for sale may include hiring some contractors to do work, and Home Buyers when you buy your home, you may want to hire contractors for different home projects. Here are some great tips when looking for someone to do remodeling projects. At the bottom there are also handouts you can download.  As always need more advice, contact us at www.MarylandHomesbyLynn.com    

1. Get at least three written estimates.
2. Check references. If possible, view earlier jobs the contractor completed.
3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
4. Be sure the contract states exactly what is to be done and how change orders will be handled.
5. Make as small of a down payment as possible so you won’t lose a lot if the contractor fails to complete the job.
6. Be sure that the contractor has the necessary permits, licenses, and insurance.
7. Check that the contract states when the work will be completed and what recourse you have if it isn’t. Also, remember that in many instances you can cancel a contract within three business days of signing it.
8. Ask if the contractor’s workers will do the entire job or whether subcontractors will be involved too.
9. Get the contractor to indemnify you if work does not meet any local building codes or regulations.
10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
11. Guarantee that the materials that will be used meet your specifications.
12. Don’t make the final payment until you’re satisfied with the work.

Attachment	Size
Download All Seller Handouts	96 KB
Download All Buyer Handouts	204.5 KB
Download "Tips for Hiring a Remodeling Contractor"	21.5 KB

Again thanks for stopping by today and visit us at www.MarylandHomesbyLynn.com
Sincerely: Lynn Nichols

PCS Checklist For Your Move

It will be time soon for PCS moves, and I know relocating can be so hard and stressful, here at Lynn Nichols Real Estate we would like to give you some tips, along with checklist, that we actual found on Military.com. If you are by any chance relocating to Fort Meade or any of the surrounding bases please contact us. You can search your Maryland Home search at www.MarylandHomesLocator.com, we have helped many of military personal find homes.

by Danielle Babb

 In making preparations for a move, it’s easy to get bogged down with all the details and things to do. Military.com can help you stay on top of it all with these handy checklists, which cover everything from packing to setting up in your new location. These ready-to-print lists will remind you what you need to do.

Be sure to take care of all the items on these lists. For example, if you’re one month away from your move and you use these checklists for the first time, make sure you’ve already taken care of the items in the “Three Months Before Moving” and “Two Months Before Moving” checklists.

These checklists can also be viewed and printed in Adobe Acrobat PDF format. You will need to download an Adobe Acrobat Reader for free if you don’t have the program already.

If you plan to do a Personally Procured Move (PPM), see our PPM Overview for more information.

#1 – Start 3 Months Before Moving  #2 – 2 Months Before Moving #3 – 1 Month Before Moving #4 – 3 Weeks Before Moving

#5 – 1 Week Before Moving  #6 – Final Days Before Moving #7 – The Big Day, Moving Day #8 – Wrap-up, After Arrival

To get more PCS tips or information, visit Military.com’s PCS, DITY, & Moving Guide.

Again thanks for stopping by and visiting us today at www.MarylandHomesLocator.com

The Hottest Outdoor Trends for 2014

Wow talking about turning your backyard into a paradise!!! If this don't help you sell your house....

Spaces by Dc Metro Home Builders National Association of Home Builders

By Melissa Dittmann Tracey, REALTOR(R) Magazine

A home’s inviting outdoor space may be just enough to get a home buyer to fall in love. TheAmerican Society of Landscape Architects recently surveyed nearly 180 landscape architects asking them to rate the expected popularity for 2014 of a variety of residential outdoor elements.

Across all categories, respondents rated the following as “somewhat” or “very in-demand” for 2014: lighting, seating/dining areas; fire pits/fireplaces; grills; installed seating, such as benches, seatwalls, ledges, steps, and boulders.

“Home owners know that designed landscapes add value to their lives as well as their property values,” says Nancy Somerville, ASLA executive vice president and CEO. “They’re interested in livable, open spaces that are both stylish and earth friendly.”

Here’s a breakdown of how home owners are sprucing up their outdoor spaces, and some of the top trends that landscape architects pinpointed for 2014 in each category.

Top Outdoor Design Elements

1. Gardens and landscaped spaces

2. Outdoor living spaces (kitchens, entertainment spaces)

3. Outdoor recreation amenities (pools, spas, tennis courts)

4. Sustainable design practices

Top Outdoor Living Features

1. Lighting

2. Seating/dining areas

3. Fire pits/fireplaces

4. Grills

Top Outdoor Recreation Amenities

1. Decorative water elements, such as ornamental pools, splash pools, waterfalls, grottos, water runnels, or bubblers

2. Spa features (hot tub, Jacuzzi, whirlpools, indoor/outdoor sauna)

3. Swimming pools

4. Sports/recreational spaces (tennis courts, bocce ball, etc.)

Top Landscape/Garden Elements

1. Low maintenance landscapes

2. Native plants

3. Fountains/ornamental water features

4. Food/vegetable gardens (including orchards/vineyards, etc.

Top Sustainable Design Elements

1. Native/adapted drought-tolerant plants

2. Drip/water-efficient irrigation

3. Permeable paving

4. Reduced lawn

Top Outdoor Structures

1. Terraces/patios/decks

2. Fencing (includes gates)

3. Pergoals

4. Decks

Thanks for stopping by and contact us anytime at www.MarylandHomesbyLynn.com

It's Taking Less to Get an FHA Loan

Well good news for folks that are thinking about buying a home and their credit is a little soft. Please contact us if you have any questions at www.MarylandHomesbyLynn.com 

DAILY REAL ESTATE NEWS

First-time and low-income mortgage borrowers may have an easier time qualifying for a Federal Housing Administration loan. Ginnie Mae, a government agency that issues bonds backed by FHA loans, reports that the average credit score on FHA-backed loans fell to 680 in 2013, and the average debt-to-income ratio rose to 40.3 percent — both indicators that credit may be easing.

In comparison, Ginnie Mae reported in January 2013 that the average credit score was 701 and the debt-to-income ratio was 38 percent.

Since last month, Wells Fargo reportedly has been qualifying FHA borrowers with credit scores as low as 600, down from a previous threshold of 640.

“The FHA theoretically allows credit scores as low as 580,” the L.A. Times reports. “But lenders, buffeted by defaulted loans and demands that they buy back troubled mortgages that they sold, generally have set standards higher since the mortgage meltdown.”

If you like you could start looking for your new home at www.MarylandHomesLocator.com

8 Quit Tips For A Tired Bathroom

Selling season is upon us and maybe you are ready to sell your house and move on to the next phase of your life. Any Realtor will tell you it is very important to have good looking and clean bathrooms. Here are some tips to get your bathroom ready for sale that are really good on a low budget. If you would like to find out more or have any questions please contact  us at www.MarylandHomesbyLynn.com  

8 Quick Fixes for a Tired Bathroom

 Remodeling a home can be expensive and exhausting. But you can breathe new life into tired rooms with just a small budget, a little sweat equity, and a healthy imagination.

California decorating consultant Gina Fulton suggests eight quick fixes to freshen the look and increase the functionality of an old, drab bathroom:

• New paint – Choose a color that brightens the space and shines with personality. Paint one wall in a bold shade. Or wallpaper one – or all four walls – in a whimsical or elegant design that says something about you.
• Vanity – Choose a new one if you can afford it – or paint the existing vanity in a bold or pastel color that offsets or complements the color of the walls.
• Drawer pulls and towel racks – The bathroom is a small space, so you may want to splurge on unique hardware that adds a touch of class.
• Sinks or faucets – If it’s been a while since you’ve perused the hardware aisle, you may be amazed at the wide variety of affordable sinks and faucets. Consider an art-glass basin or a high-arcing faucet that adds fresh perspective to the bath.
• Lighting and mirrors – Replace a small mirror with a larger one. Surround it with dressing-room lights. Or frame it to match or contrast the walls.
• Flooring – Install inexpensive tile, hardwood or bamboo flooring that updates and complements your new design.
• Artwork – Choose a theme – perhaps impressionist prints, French boudoir prints, or even a series of framed family vacation photos. Keep visual interest in mind, but be sure to use surfaces that won’t suffer from steamy air.
• New towels and shower curtain – Whip up a sink skirt for a stand-alone sink. Embellished towels and coordinating shower curtain can pull your new design scheme together and enhance the updated look.

 By Barbara Pronin

Thanks so much for stopping by and feel free to visit us at www.MarylandHomesbyLynn.com

National Weather Service Issues Winter Storm Warning for Virginia, Maryland, DC

Hey everyone I know I can speak for most Marylander's when I say we are really done with the snow, but it is coming. Please be safe and do not drive unless you really have to. Please check to see if you have flashlights, with batteries, your cell phones are charged, you have enough food and some candles on hand. Please don't forget your pets and bring them in. If you have a neighbor that is not mobile or elderly it may be a good idea to check and see if they are prepared. From everyone here at Lynn Nichols Real Estate please be safe.

The National Weather Service has issued a Winter Storm Warning for the entire Maryland, DC and Northern Virginia region.

The NWS warning, issued overnight, begins at midnight Sunday and continues until 6 p.m. Monday.

The warning is for heavy snow, sleet and freezing rain. The weather will start out with freezing rain, changing to sleet and then heavy snow. The area could see one-tenth an inch of ice or more at higher elevations, followed by 8 to 12 inches of snow.

The freezing rain and sleet will likely begin overnight Sunday changing to heavy snow and continuing through Monday. Temperatures are expected to drop from the low 30s around midnight to the low 20s through Monday. 

The National Weather Service warns that travel could be "very hazardous Sunday night through Monday, especially affecting the Monday morning and evening commutes. 

The NWS also warns that power outages are possible because of the one-two punch of ice followed by heavy snow. 

Residents are warned to only travel in an emergency, and to keep a flashlight, food and water in your vehicle if you are traveling due to an emergency.

Find Real Estate Tax Deductions

So here are just a few good reasons to own a house.

A list of top tax deductions that will save you money

By Susan Wellish

You are at the point in your life when buying a home makes financial sense, but renting a home for the past few years has not helped you to accumulate equity. Fortunately, the Internal Revenue Service (IRS) rewards homeowners with tax deductions for buying a home. These deductions will put money into your savings account. You will have the opportunity to utilize the savings to improve and repair the home, save for a rainy day or take a vacation. Below are some valid reasons to support buying a home as a tax savings plan.

The IRS provides tax deductions

Buying a home is a lifetime goal for many people. The IRS provides numerous tax deductions to help taxpayers live their dream of home ownership. The IRS allows for certain deductions to be itemized on Form 1040, the yearly tax return. In order to qualify for the IRS mortgage interest, property tax deduction, rental income and points deductions, the mortgage has to be from a secured loan. The lender must send a Form 1098 (Mortgage Interest Statement) by February 1 of each year. The IRS has programs for first-time buyers that offer additional tax savings. Tax deductions are also available for owners of homes that have rental apartments.

Property tax calculations

Most areas in the United States have counties that collect real estate taxes. Real estate taxes can be quite expensive. Location and services offered usually are the basis for a high percentage of allocations of tax to each homeowner. A property tax is calculated by a percentage times the property size, called the assessed value. Property tax serves many purposes for counties and cities, such as funding police, fire, education and street repairs. The IRS allows real estate property deduction on a primary home and any other home you own and pay property taxes on, based on its assessed value.

Positive and negative points

Purchasing a home has a closing process that requires an outlay of cash up front known as closing costs. The largest expense in closing costs is points. There are points paid to allow you a lower interest rate, known as positive points. If your financial situation is such that you won't have the cash up front for points, you can take the option of higher interest, in lieu of cash outlay for points, known as negative points. Points do have a positive tax benefit. They can be deducted. But there is a caveat to this tax deduction -- these points are deducted at the point of sale and are considered interest. A statement of how much property tax needs to be paid will be sent to the home owner each year and needs to be included with the yearly tax return in order to be claimed.

Other tax advantages

Below are popular tax deductions for those who qualify:

• Home office deduction
• Energy savings credits
• Sale of a home (qualifies for a one-time waiver of capital gains)

The home as a tax saver

Homeownership offers a quality of life and stability to homeowners. Financially, a home is a tax-savings vehicle. The primary tax deductions authorized by the IRS are mortgage interest, property taxes, state and local taxes and mortgage points. Each line of deduction is populated to the IRS Form 1040 Schedule A. On this schedule, under taxes you paid, will be the section for property taxes (line 6) and state and local taxes (lines 5). In addition the largest deduction will be the interest you paid on the mortgage (line 10). The first year you own a home it may be wise to consult with a certified public accountant who can advise and teach you how to deal with home tax deductions and how to fill out the tax return correctly. Saving money on tax deductions can put real money in your wallet.

Thanks for stopping by today and always if you have any questions please contact us at www.MarylandHomesbyLynn.com