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What every homeowner should know about their property insurance

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Insurance is required on a home by the mortgage company, but homeowners rely on it for peace of mind also.   Unfortunately, people may not take the time to investigate their policy and what it covers until they need to file a claim, which could be too late. While it may not seem like the best use of your time, an in-depth visit with your property insurance agent once a year could be valuable to you if you have losses and could increase your peace of mind. The following are some questions you can ask your insurance agent: What is the insured value of the policy and the replacement cost of your home?   Insured value is the amount that would be paid for a total loss but replacing the home could cost more than that amount. What is the deductible?   Higher deductibles on the first amount of the loss are one way to lower the cost of the premium.   It may sound good when you're having to pay for the policy but feel very different at the time you file a cla...
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A Word Homeowners Needs To Understand

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A Word Homeowners Need to Understand Acquisition Debt is the amount of money borrowed used to buy, build or improve a principal residence or second home. Under the new tax law, mortgages taken after 12/14/17 are limited to a combination of $750,000 on the first and second homes. The mortgage interest on this debt is tax deductible when itemizing deductions. It is a dynamic number that is reduced with each payment as the unpaid balance goes down. The only way to increase acquisition debt is to borrow money to make capital improvements. Prior to the new law, homeowners could additionally borrow up to $100,000 of home equity debt for any purpose and deduct the interest when itemizing deductions. Mortgage interest on home equity debt is no longer deductible unless it is for capital improvements. Acquisition debt cannot be increased by refinancing. Some confusion occurs because mortgage lenders are concerned in making home loans that will be repaid according the t...
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VA Allows Buyer-paid Broker Fees

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The U.S. Department of Veterans Affairs, known as VA, issued a policy change that now allows payment to buyer brokers on VA loans.   They will be subject to certain safeguards, such as the requirement that all buyer-broker fees charged to veterans "must be reasonable and customary within local markets."   The circular is effective Aug. 10, 2024, and is valid until rescinded. The VA also clarified that veterans can still ask sellers to cover these fees which in most cases will be negotiated in the offer to purchase agreement.   As the practicality of the settlement of the lawsuit becomes clearer, VA is expected to issue a permanent policy. This change in policy will protect veterans in situations where there is competition for a particular property and the seller might select another offer because those buyers were paying their own buyer's agent fee.   Prior to this policy change, veterans were not allowed to pay, "under any circumstances, b...
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