5 real estate issues that impact your taxes

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You buy sell or try to refinance in the current housing market is sometimes difficult to tell -- joining us now some tips and insiders to some of your questions is really -- -- -- all of sun baking so much for joining us Jerry.

Short thanks for having me REL does start with one of the first questions we got this comes from TJB -- -- says my wife wants to downsize our house.

We still -- 130000.

We already have a 5%.

Rate shoot we refinance.

Or sell and downsize any advice.

Absolutely well you know -- everyone's question in terms of refinancing is very situation specific.

In this case we -- -- some typical rules of thumb for refinancing the pros Leno are you get a lower interest rates.

And you can decrease in this market because the rates are so low that amortization period the -- which is a big -- in this situation is going to be the costs it's gonna cost you.

Probably spent about three years to recover those costs.

And with a 5% rate it's a decent rate unless you've got really good credit you may not beat that rate by too much but here's the big thing if teaching is looking to downsize.

Remember that your mortgages only one part.

Of that home.

Cost equation.

And it's the one -- it's gonna go away the other parts the real estate taxes the insurance utilities the maintenance are not ever gonna go away.

So if -- look think downsize specifically I don't think refinancing is the -- You need to really be thinking about.

When you can get the most money for the house you're looking to sell.

Where you gonna do the best in terms of where you want to buy yen or rent and then what you're gonna do with that savings in between in other words the profit that you may make from selling.

And also the savings in the monthly expenses because essentially why -- refinance a house -- too big ordinance in a location that you don't really have to be an anymore.

Basically you're paying for something that you're not using and that's the -- -- -- question you're better off moving and downsizing.

For real.

Okay our next question comes for a bill he says.

-- reverse mortgages are a good deal or did they just -- fees to make servicing agents fracture.

Very perceptive question and there are two big issues with reverse mortgages the -- is the upfront costs they're winning more expensive than a typical loan.

And the second is the way you have to take the product and it really does -- -- a lot of ways.

You just don't know what the future's gonna hold if you're an older American you may need to move into assisted living you may pass away.

In all those instances your hands are tied and it triggers you having to repay the loan.

I prefer.

Doing a typical mortgage financing is an older person needs alone can afford the payments if you have to do a reverse mortgage -- simple as long as you possibly and to do it.

One word of advice -- though because of the problems FHA is having now they aren't going to be cutting back on some of the different types of programs so of someone's thinking about a reverse mortgage they wanna get that done before April when some of those programs will go away.

-- -- with some real estate advice for us today you so much.

Mr.

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5 real estate issues that impact your taxes

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