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Heads up on one more way to save on your taxes this year.

All Louisiana taxpayers who pay homeowners insurance are due a 4.3% refund this year.  You probably know that state homeowners insurance policies include a 4.3% Louisiana Citizens Insurance assessment on top of the premium.  This assessment is designated to pay for bonds for the damages of Hurricanes Katrina and Rita.   However in years when there are no large catastrophes, LA Citizens collects enough premiums to cover their cost of operations.

You can file for the refund on your regular Louisiana tax return form or by using form R-540INS, which can be downloaded from the state Department of Revenue website. For more information and to get answers to any questions you might have, go to this Louisiana Department of Revenue site, which includes form R-540INS.

I am a full time agent.  This is my chosen career.  I love what I do and always strive to become better at it.  Yet as I work with other agents, I sometimes run across those that make me say “What the h-e-double hockey sticks?”

So in the interest of the public good, my friend from ActiveRain, Lisa Heindel, conducted a poll of professional REALTORs® across the country, asking them to finish the statement “You might need a new agent if…”. Here are the responses she compiled during her completely unscientific survey. Some are sad, some are funny, and some are all to common, but they point to why you need to do a little research before choosing your REALTOR®.

You Might Need a New Agent If….

  • Your agent doesn’t have a lockbox key to actually get you into the homes you want to see. That’s OK, you don’t mind working your appointments around the schedules of the 12 different listing agents that have to meet you and let you into the houses while secretly rolling their eyes at your agent, do you?
  • Your agent thinks using email is “high tech” or they only check it once a week. That whole email thing is just a passing fad anyway, right?
  • Your agent doesn’t have a website or blog that provides you with good, local information about buying or selling a home. See email explanation above.
  • Your current agent answers every single question with “I don’t know…”. There is a reason they are wearing that giant name tag on their lapel.
  • Your agent doesn’t know how to fill out the standard real estate forms without asking for help…from the agent on the other side of the sale. However, I’m sure that other agent has only your best interests at heart when advising them how to structure your counter offer. You’ll be fine. Really.
  • Your agent forgot to send your accepted contract to the lender or title company resulting in a delay of the closing. What do you mean you already hired the movers?
  • Your agent doesn’t keep up on changing regulations and is surprised that they can’t do something the way they’ve been doing it for years. What with all of the time they spend scheduling appointments, they can’t be expected to keep up with ALL of those changes, can they?
  • There are no photos of your house online, or there is just that one of the front. Truly, your house looks great in that picture that was taken from their car…at dusk…in the rain…with their cell phone.  Based on that one grainy shot, I’m sure the buyers will be beating a path to your door.
  • Your listing in the MLS is full of errors. You mean you don’t actually have 6 bedrooms and a pool for $99,000?
  • You find yourself looking at kitchens when you can’t even afford the toaster. But I’m sure it’s a ton of fun spending all of your spare time looking at beautiful homes that you can’t buy. Didn’t your mom tell you that disappointment builds character?
  • Your agent doesn’t own a fax machine, a camera or any of the other tools of the trade. Fred Flintstone called and he wants his stone tablet back.
  • You are always calling other agents about properties because your agent is busy. Remember, their motto is “You Are Number 1  214”
  • Your agent doesn’t answer their cell phone or only returns calls at specific times of day. If 10 or 2 doesn’t work for you, there’s always tomorrow. It wasn’t important, was it?
  • Your current agent has a “real” full time job and can only show you houses on their lunch hour and after work. Psst….this IS a real job.
  • You are emailing other agents asking if your agent’s behavior is normal. Now that’s just scary.
  • Your agent seems to enjoy controversy, whether with you or the agent on the other side. Selling or buying a house isn’t stressful enough, is it?  Don’t you want more drama in your life?

These are true life occurrences.  The names of the guilty have been deleted, otherwise this post would have been way too long.  If you are an agent reading this and recognize yourself.  Call me.  We need to talk!

In October, the Federal Housing Administration (FHA) announced that its capital reserve fund had fallen below the congressionally mandated level of 2%.  In order to restore the reserve to the mandated levels, FHA will announce some major changes to their lending guidelines that will have an impact on lenders and borrowers alike. 

Upfront Mortgage Insurance
The Upfront Mortgage Insurance that FHA requires on most of their loans will be increased from 1.75% to 2.25%.  This amount is added to the final loan amount, so there will not be additional funds needed at closing from the borrower. 

For example, a borrower with a loan amount of $200,000 would normally have $3,500 added to their loan balance due to the M.I.P.  Now that the M.I.P. has been raised to 2.25%, that amount will go to $4,500.  To put this in perspective, using current local rates of about 5.5% on a 30-year fixed rate loan, that additional amount would add $5.68 per month to the note.

Maximum Seller Contributions
Seller contributions to pay borrower closing costs is currently 6%, but will drop to 3%. 
Using a $200,000 purchase price, that is $6,000 less the seller could contribute. 

Low Credit Scores
Borrowers with credit scores below 580 will be required to put at least 10% down.  Because few lenders that offer FHA loans will accept credit scores below 620 in today’s market, this will not be an issue for most borrowers.  

Considering these upcoming changes and the fact that first-time and move-up homebuyer tax credits are only available until April, I’m encouraging anyone thinking of buying a home to act now!

More and more people these days are jumping on the green bandwagon.  Not everyone is ready to invest in solar panels or geothermal heat pumps, though.

So what can a person do other than change all your lightbulbs to compact fluorescents?  Many things of course, but one of the most satisfactory to me is Catalog Choice.  This is a free service that helps you stop companies from sending you unwanted catalogs.

It has really cut down on the amount of paper that comes into my house, not to mention the amount of mail I have to sort through every day.

The process will go quickly if you save the unwanted catalogs you’re getting (or you can just tear off and save the mailing label), and when you have a bunch, just go to Catalog Choice and search by catalog name.  Enter the info from the address label, and Catalog Choice will contact the retailer for you.  If a particular catalog isn’t on the list, suggest it to them.  It really is easy, and you just might save a tree.

Good news for those of us with children in elementary and secondary school.  The Louisiana legislature passed a bill in 2008 (and revised in 2009) that allows taxpayers to deduct public, private, and home school tuition and expenses from their 2009 taxable income.  A taxpayer may deduct up to 50% of the costs with a limit of $5,000 per child.

That’s right.  The cost of school tuition, uniforms, curricula, textbooks, and supplies can be deducted on Schedule E when you file your 2009 tax return.  Unfortunately, costs for athletics and other extracurricular activities, as well as field trips, are not included in the deduction.

You must file a schedule E, and hopefully, you’ve kept all your receipts for proof of your claim.  For all the details and a few examples, visit this page of the Louisiana Department of Revenue website.

Please be sure to tell all your friends who have children in school about this.  If they’re anything like me, every little bit of tax relief helps.

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