How to get $1/2 Million Dollars Ahead.

27 12 2011

Small steps for big results.

In life, there are a few small actions that you can do that will have a tremendous benefit for you.  The biggest is to start and grow your own successful business.  But whether you’re an entrepreneur or not, everyone needs a roof over their head.  And how you finance that roof can put over $500,000 in your pocket or someone else’s.

The average renter in Oklahoma pays about $750 per month in rent.  Property values and rent typically rise about 3% per year in Oklahoma, and over the 30 years that typically make up your working life, you would have spent $435,019 in rent, and have not even on cent of equity.  That’s what I call a terrible deal.

By buying a home with a similar monthly payment, not only would you own a paid-for home worth $327,680, but you would have saved $53,640 on your taxes as well.  By year five in your home, you would have received more back on your tax returns than you put down for the down payment.  The IRS pays you back for your investment, you make the same monthly payment for a house that pays YOU back.  That’s what I call a smart deal.

Let’s look at the math:

Renting:

Costs                                             $-488,659.00

Benefits                                                      $0.00

Total                                             $-488,659.00

Owning a home:

Costs:                                            $-237,172.00

Benefits, equity                            $327,680.00

Benefits, tax savings                      $53,640.00

Total                                                $144,148.00

So you can pay almost $1/2 Million to a landlord for no benefits, or you can pay yourself and come out over $1/2 Million ahead.  It’s your choice.  And when you’re ready to make a smart choice for you, I’d like to help you.

Wilhelm Koenig

405.249.5993 cell

Advertisements




Green means go!

14 03 2011

Green.  It means go.  It means spring.  It means cash.  And for mortgage-backed securities, it means dropping rates

If you can handle the scare, click HERE to check out the national averages for 30 year fixed rates from 1986 to the present.  It’s sobering to see how cheap our home buying money is right now.

Over the past 30 years, the average mortgage interest rate in the US has been over 7%.  This means that today you could buy over $50,000 more house for the same payment or buy the same house and save over $74,000 more dollars. 

If you were unable to refinance this past year, now is the time to speak with a qualified lender to learn how much green you can save. 

Here to serve,





Love your home or Love paying taxes?

28 02 2011

Love paying taxes?  Sure you do, doesn’t everyone?  Most people know that homeownership offers significant tax deductions, but may overlook a few of them as they are preparing their taxes this year.  Here are a few of the most-overlooked home tax deductions.  As always, please consult your qualified tax advisor.

How much of my mortgage interest payment is deductible?

  1. Interest on debt used to buy, build, or improve your home (with some exceptions)
  2. Mortgage Insurance and funding fees for government loans (with some exceptions based on income level)
  3. Property taxes on first and second homes

 I sold my house this year.  Will I owe capital gains tax?

  1. If it was their primary residence for at least 2 of the last 5 years, a married/joint filer could exclude the first $500,000 of profit from paying taxes.
  2. If you made less than the $500,000 profit from the sale, no tax forms are required and no tax is due.
  3. If you sold a vacation home, you may be able to exclude all or some of your gain.

Do I get to deduct money I lost on the sale of my home?

  1. No, but losses on the sale of investment property are deductible.

I bought or refinanced a home this year—which of the closing costs are deductible?

  1. The real estate taxes that you may have paid at closing are deductible.
  2. Prepaid interest is deductible.  You should receive a 1098 from your lender.

Aren’t points deductible?

  1. Yes, based on the following IRS worksheet HERE.
  2. On a purchase, points are deductible on that year’s taxes.
  3. On a refinance, points are prorated over the duration of the loan.  For instance, if you paid $1500 in points on a 15 year refi, you would get to claim  $100 per year.  But if you refi again 2 years later, you could claim the remainder of the original unclaimed points ($1200) plus any applicable prorated points for the new mortgage.

Please consult your tax advisor to see how this information may apply to you.   

Did I forget any other home-related tax deductions?  If so, please share your wisdom with the world below.

Please reach out to me with your questions and concerns about finance and homeownership.  As always, I am here to serve.  Thanks!





Thoughts after Dave Ramsey OKC

21 02 2011

This past Saturday, 10K+ people filled the Cox center for a Total Money Makeover event hosted by Dave Ramsey.  Whether you like or hate his views on debt and credit, it’s hard to ignore them.  Just like it’s hard to argue with simple common sense.

I am a professional debt salesperson.  I sell mortgages, you know, debts designed to last your entire working career.  You’d think that I’d like debts, mortgages, and “creative” financing.  The truth is, I love homes, family, and the financial future that a home can help provide.  But I don’t like debt any more than you do.  In fact, I get happy when I can help my clients kill their mortgage.  There are things way more important than a mortgaged “lifestyle.”

A home really is the biggest step most people will ever take to turbo-charge their financial future, short of starting their own business.  The average homeowner has a net worth of $170,000 compared to the average renter’s net worth of $5,000.

But a home means something different to me now that I am debt-free.  And for many Oklahomans, their concept of a home and debt has changed over the past 2 years, too.  Cash became the #1 financing choice earlier this year.  Credit card debt in the US has decreased every month since late 2008.  The average new home is smaller than the “McMansions” built through most of the 2000s.  And these changes have happened during a time where the costs for owning a home have been at their lowest in history.  The numbers haven’t changed.  Our views on what are acceptable numbers have changed, partly due to Dave Ramsey and his ideas on debt.

This is why I see it as my mission to help as many Oklahomans save as much as possible on their homes—so they can use that money for life.  For their dreams.  For their families.  For their futures.

If you’d like to be a part of the family of clients who saved over $10 million dollars on their homes for the past two years, please reach out to me.  Because your food will taste better and your grass will feel better once you are debt-free.

Thank you,

Wilhelm Koenig

405.249.5993

 





Homebuyer tax credit extended again

4 07 2010

President Obama signed a law to extend the closing date for three extra months.  Homebuyers who went under contract before April 30th, 2010 now have until September 30th to close and receive the tax credit.  The National Association of Realtors (NAR) has estimated 180,000 homebuyers would have missed the tax credit, as many banks have struggled with the extra volume of business.  This is great news for homebuyers who wrote contracts involving bank-owned properties, as these can take extra weeks or months to complete.

For the full article from Reuters, click HERE.

If you have struggled to close, please reach out to me.  My company specializes in 20 day closings for well-qualified customers.





Homebuyer Tax Credit Extended Until 2011 For Overseas Military

19 04 2010

Good news from the IRS for our veterans:

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.  

Members of the uniformed services, the Foreign Service and employees of the intelligence community are eligible.  It applies to individuals that served on qualified official extended duty service outside of the United States for at least 90 days during from Dec. 31, 2008, to May 1, 2010.

The eligible taxpayer must buy, or go under contract to buy, a principal residence on or before April 30, 2011.  They have until June 30, 2011, to close on the purchase.





The secret way to deduct points on a REFINANCE.

9 02 2010

I learn something new every day.  Or at least I hope I do.  And today I learned that there is a way to deduct the points paid on a refinance in the year of the refinance. This is huge.  Let me explain.

I’ve read the IRS publications on deducting points and asked every CPA I meet about this.  Every one of them said the same thing: you can deduct points paid on a purchase in the year of the purchase, but on a refinance, you must evenly divide them over the life of the loan.

This means $3,000 in points on a 30 year refinance would be $3,000 / 30 = $100 tax deduction per year.  Nothing to get excited about.

But I ran across an article in Kiplinger Financial today that stated that if the money saved on a refinance is used to improve, remodel, or repair the home, then you can deduct the total points paid in one calendar year, even if you don’t claim the deduction until, say, the 4th year after the refinance.

So you can save money with a refinance and wait until the year you need a whopper deduction.  Then fix up your home that year, and claim your points that year as a large deduction.  The IRS wants you to love your home.  The trick is knowing how to do it the smart way, so you can save the most money and minimize your taxes.

Please contact me for a personal refinance assessment.

I’ll show you the costs, benefits, and tax consequences and let you choose which is best for you.

For the full Kiplinger financial report, search for Kiplinger Tax letter dated Aug 24, 2005.

I am not a CPA and am not licensed to give tax advice.  Please consult your CPA.