Some Highlights: The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time. Freddie Mac
New Tax Law Could Change Your HELOC Deduction
Dated: 01/09/2018
Views: 86
‘Tappable equity’ at record high, but tax law could change impact
JACKSONVILLE, Fla. – Jan. 8, 2018 – Jacksonville-based Black Knight's monthly Mortgage Monitor found that homeowners' "tappable" equity reached a record high in the third quarter.
As of Sept. 30, 42 million homeowners with a mortgage had nearly $5.4 trillion in equity available to borrow against, assuming a maximum 80 percent total loan-to-value ratio, according to the report. More than 80 percent of all mortgage holders now have available equity to tap via a first-lien cash-out refinance or home equity line of credit (HELOC).
Under the recently passed tax reform plan, however, interest on HELOCs is no longer deductible, according to the report, increasing the post-tax expense of such products for those who itemize.
Black Knight's Ben Graboske says the math would still favor HELOCs for many borrowers with high unpaid principal balances who take out low-dollar lines of credit. However, for low-to-moderate "unpaid principal balance" borrowers taking out larger amounts of equity – assuming interest on cash-out refinances remains deductible – the post-tax math may now favor a cash-out refi.
Florida is among states with the highest percentage of non-current loans and seriously delinquent loans, Black Knight reported.
Source: MBA NewsLink (01/08/18) Sorohan, Mike
Latest Blog Posts
Want to know what home prices are like in Orlando, Florida? In this quick blog Franchesca & Richard of Crown Home Group powered By eXp discuss the prices of homes in the Orlando, FL area.
Timestamped Table of Contents 1:20 - Why It's So Important To Get Pre-Approved For A Mortgage First 4:25 - Employment Requirements 6:00 - Quick Word For Self-Employed Borrowers :
It’s a well known fact that investing in Real Estate can make you rich. Buying, holding, and flipping real estate probably makes more millionaires than any other investment vehicle. While a lot
Copyright ©2011 MFRMLS.com All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested
