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Taxes Made Easy for Your Home-Based Business
I had never heard of Gary W. Carter and had never read any of his books until now – and I have to say I'm really glad that I did. Anyone who has a home-based business or is contemplating starting one needs this book on their reference shelf. If...
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Disaster Decision - Do You Need Insurance?
The expenses involved with owning a home can be overwhelming at times - routine maintenance, repairs, seasonal preparations, improvements. Not to mention taxes, fees, and all those monthly bills. Some homeowners, in trying to reduce their...
Work From Home in 3 Easy Steps
Does the drive to and from work wear you out? Do you wake up depressed because you are going to a job you hate, come home depressed because you did a job you hate, and go to bed dreading going back to a job you hate? It may be time to consider a new...
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Home Based Business: Your Ultimate Tax Shelter
Starting and operating your own home based business is the ultimate tax shelter. Although this article has been written from a Canadian income tax perceptive, the principles should be practical in other tax jurisdictions. 1. Non-Deductible...
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Real Estate Closing Costs Exposed
Closing costs can come as a shock to anyone buying or selling real estate - especially to investors. Here's an explanation of the various expenses you must plan for:
Down Payment Most lenders require a down payment of from zero to 20% for a normal home purchase.
Lender's Loan Origination Fee Government regulations allow 1% origination fee on FHA or VA loans. Conventional loan fees can vary from 1 to 3 points or more. A point is 1% of the loan.
Appraisal Fee About $300-$500. Non refundable.
Credit Report $50-$60. Non refundable.
Tax Service Fee In some areas a charge of approximately $75 by a tax service company to verify to lender that taxes are actually being paid.
Assumption Fee Fee of approximately $250 up to 1% of the loan balance charged by existing lender for permission to assume existing loan.
Pest Inspection Fee A fee of $100 - $175 is charged for inspecting property for wood destroying organisms (termites). Customary for the seller to pay.
Optional Fees At buyer's option: property inspections that cover foundation, electrical, plumbing and overall construction at a cost of $300-$400. Roof inspections cost $75-$125. Geological reports about $100. Septic $200-$400. Radon $50-$100. Asbestos $75-$125.
Title Insurance Cost determined by a rate chart and is based on the loan amount.
City Transfer Tax Imposed within the corporate limits of some cities. The VA does not
allow the veteran buyer to pay any portion of this cost.
Miscellaneous Costs & Fees $150 should cover notary, recording documents, endorsements, etc.
Hazard/Fire Insurance Reserve Two month's premium is usually collected for the impound account if required. Paid by buyer.
Prepaid Interest Interest must be paid from close of escrow to 30 days prior to the first regular mortgage payment.
Mortgage Insurance Required on all conventional loans greater than 80%. Cost ranges from about 1/2% to 1% per year. 14 months premium is collected in advance. For benefit of lender in case of default.
Tax Impounds When new loan is going to have an impound account, lender will require from 2-10 months taxes be deposited in impound account. If taxes are prorated, buyer's total charge for taxes should equal about six month's taxes.
Escrow Fee $750-$2500, depending on the sales price. Can be paid by buyer, seller or split. Everything is negotiable.
We have listed examples for typical closing cost. Closing procedures and costs vary from area to area.
Your real estate agent and loan agent can provide estimated closing costs. Don't neglect to add them to all the other costs of buying real estate when determining the affordability of a property.
About the Author
About The Author: Mark Walters is an investor and author. You can find his published material at http://www.CashFlowInstitute.com http://cfiblog.blogspot.com/
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