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Good news for homebuyers. Mortgage rates remain low.

According to the Freddie Mac Primary Mortgage Market Survey, average fixed mortgage rates have held steady in recent weeks. For five weeks in a row, average rates on 30-year fixed-rate mortgages haven’t increased over the 4 percent mark. At the same time last year, the average rate on 30-year FRMs averaged 4.46. While the 15-year FRMs held steady at an average of 3.3 percent from the week before, rates are down an average of 0.51 percent from the same time last year. Adjustable-rate mortgages, meanwhile, have also fallen to record lows.

Good News for Home Buyers
The loss of percentage points is good news for home buyers. Due to these low mortgage rates, home affordability has never been higher.  Click here to read more.

What to Ask Before Buying at a Foreclosure Auction

Although foreclosed properties can be good deals, the process of buying is rife with pitfalls. Here is what you must know:

1. Have you done your research?
A foreclosed property may have all sorts of clouds on its title, from multiple bank loans to tax and contractor’s liens. Once you buy, you’re responsible for all such balances. Be especially wary of the situation where one bank forecloses, but another still demands to be paid.

2. How far has the process gone?
If the foreclosure hasn’t happened yet, it’s often possible to contact the owners and arrange a pre-foreclosure sale, which can benefit both parties. The next step is the foreclosure auction, where the greatest risks and rewards are found. Finally, it’s possible to buy post-auction properties from the bank. These are usually spruced up, but they’re priced higher as a result. Click here to read more.

Current tax breaks for homeowners

There are many benefits to owning a home, not the least of which are the financial advantages of home ownership. Homeowners can gain a number of tax benefits, and, combined with the Fed’s indication to keep interest rates attractively low throughout the new year, home buying in 2012 is promising to be a financially astute plan. Consult with your accountant about which of the following perks you might enjoy.

Mortgage Interest Deductions (MID)
This deduction allows home owning taxpayers to reduce their taxable income by the amount paid in interest on their residential home loan. Since interest payments alone can easily be double (even triple) the sale price of the property, this deduction can be quite valuable!

In 2011, the legislature considered putting this tax benefit on the chopping block. The good news is that the deadline for action passed in November, and there is presently no proposal to limit this mortgage interest deduction. Click here to read more.

Should you paint wood floors?

Should you paint over an old wood floor, or should you restore the floor to its natural beauty? Although your decision will ultimately depend on your taste, there are a few things to consider before you plunge in to the job.

How long will you live there? You may love the look of painted floors, but most buyers prefer natural wood. If you are going to put time and money into the floors, you might as well improve the home’s value by refinishing. The cost comparison depends on who does the job and how much repair is involved, but you will likely recoup any additional cost to refinish down the road. Click here to read more.

Ideas to enjoy the holidays

People tend to get so busy they forget that it’s the simple gifts, the simple activities and even the simple decor that usually creates the most enjoyable season. Here are some fantastic ideas to help your holiday season flow a little better.

Go for the Experience
Whether hosting a holiday dinner for family or friends or searching for a great gift for someone, focus on the experience instead of price or tangible gifts. One way is to host a “white elephant” gift exchange party and limit the gift pricing to $5 or $10 each. This enables guests to each receive a gift without everyone spending a lot of money. Think of fun ways to conduct the exchange; this is great for parties with ten people or more!

For experience-based gifts, consider buying tickets to concerts or gift cards to a dinner theater. Find out the recipient’s favorite activity (golf, hunting, fishing, skiing, skating, bowling, movies, restaurants, etc.) and purchase tickets or gift cards for one of these. For the one that’s more laid back, consider giving a free day at the spa! Click here to read more.

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