Mortgage Interest Deduction mostly helps families making over $100,000 in a few states

To follow up from yesterday’s post.

Higher-income earners in few states dominate mortgage interest tax deduction

By Jon Prior September 17, 2012 • 4:54pm

Those most likely to claim the highly protected mortgage interest tax deduction are higher-income earners in mainly 10 states.

Taxpayers with an adjusted gross income of $100,000 or more accounted for just 13% of all returns in 2008 but claimed 47% of all mortgage interest and property tax deductions, according to a Government Accountability Office study released Monday.

Those making less than $100,000 made up the other half of the claims but represent 87% of all returns.

“Higher-income households are generally more likely to itemize and claim the mortgage interest and property tax deductions, because they have larger amounts to claim. Moreover, they also have received greater tax savings from the two deductions,” GAO researchers said.

More than half of taxpayers claiming the mortgage interest tax deduction resided in 10 states – California, New York, New Jersey, Illinois, Maryland, Virginia, Massachusetts, Colorado, Washington, and Connecticut. But these states accounted for just more than one-third of all returns in 2008.

 

---

Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.

Name	*
Email	*
Phone	*

---

We're sorry, but it seems that we're having some problems loading MLS # S709822 from our database. Please check back soon.

Proprietary OC Housing News home purchase analysis

11620 WARNER Ave #627 Fountain Valley, CA 92708

$239,900 …….. Asking Price
$195,000 ………. Purchase Price
8/3/2012 ………. Purchase Date

$44,900 ………. Gross Gain (Loss)
($15,600) ………… Commissions and Costs at 8%
============================================
$29,300 ………. Net Gain (Loss)
============================================
23.0% ………. Gross Percent Change
15.0% ………. Net Percent Change
276.3% ………… Annual Appreciation

Cost of Home Ownership
——————————————————————————
$239,900 …….. Asking Price
$8,397 ………… 3.5% Down FHA Financing
3.60% …………. Mortgage Interest Rate
30 ……………… Number of Years
$231,504 …….. Mortgage
$70,705 ………. Income Requirement

$1,053 ………… Monthly Mortgage Payment
$208 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$60 ………… Homeowners Insurance at 0.3%
$241 ………… Private Mortgage Insurance
$265 ………… Homeowners Association Fees
============================================
$1,827 ………. Monthly Cash Outlays

($158) ………. Tax Savings
($358) ………. Equity Hidden in Payment
$10 ………….. Lost Income to Down Payment
$50 ………….. Maintenance and Replacement Reserves
============================================
$1,370 ………. Monthly Cost of Ownership

Cash Acquisition Demands
——————————————————————————
$3,899 ………… Furnishing and Move In at 1% + $1,500
$3,899 ………… Closing Costs at 1% + $1,500
$2,315 ………… Interest Points
$8,397 ………… Down Payment
============================================
$18,510 ………. Total Cash Costs
$21,000 ………. Emergency Cash Reserves
============================================
$39,510 ………. Total Savings Needed

---

The property above is available for sale on the MLS.

Contact us for a comparative market analysis, a cost of ownership analysis, or information on how you can make an offer today!

Name	*
Email	*
Phone	*

---

Cost of Ownership Analysis

Are you ready to make an offer, but you are worried the cost of ownership is really more than you can afford? Don't make a mistake that might cost you the family home, your life savings, and your good credit! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today! We produce detailed reports showing the cost of ownership based on the most likely transaction price and current financing terms. You will know how much you will spend each month in out-of-pocket expenditures and the true monthly cost of ownership factoring in tax deductions, loan amortization, and opportunity costs on your down payment. In addition, we show you how this cost compares to a rental of equal quality to make sure buying is the right decision for your situation. An OC Housing News Cost of Ownership Analysis will calm your worries and give you peace-of-mind. Let us show you the way!

Address	*
Name	*
Email	*
Phone	*

Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at info@ochousingnews.com, and we will prepare the reports for you.

---

OC Housing News FREE Guides!

---

 

Nearby Foreclosures

Gain a competitive advantage over other buyers. By locating distressed properties -- before they hit the MLS -- you can discover where tomorrow's REOs and short sales will appear. Most of these properties are not listed on the MLS, but they will be soon. Research properties in advance and get a jump on your competition. Don't miss out on another deal because you couldn't act quickly. Use this tool to your advantage! The red properties are already bank owned. As soon as REO asset managers prepare them for sale, they will be on the MLS. Get ready! The green and blue properties have owners who are not paying their mortgages. They may be offered as short sales, or they may go through foreclosure and become REO. Either way, they will also likely be available on the MLS soon. Find your next home! Be prepared to offer on these properties by researching them in advance or risk losing out to buyers who are have done their homework. Start your research today! To find distressed properties, enter your desired location and press search. Scroll through list by pressing "next."

---

Comparative Market Analysis

Are you ready to make an offer, but you are worried you will either (1) underbid and miss the property or (2) overbid and pay too much? Don't make a mistake and miss your dream home, or worse yet, overpay for it! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today! Are you thinking about selling, but you are worried you will either (1) overprice and fail to sell or (2) underprice and leave money at the negotiating table? We are the experts in real estate valuation. Work with us to set the right prices to sell your property quickly for the largest amount possible. Let us show you what your property is worth today! An OC Housing News Comparative Market Analysis will calm your worries and give you peace-of-mind. See for yourself right now!

Address	*
Name	*
Email	*
Phone	*

Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at info@ochousingnews.com, and we will prepare the reports for you.

---

	$350,000 17168 NEWHOPE St #212		0.07 miles 2 bd / 2 ba 1,257 Sq. Ft.
	$329,000 11116 LA NARANJA Ct		0.63 miles 3 bd / 1.5 ba 1,268 Sq. Ft.
	$245,000 16445 ABERDENE Mtn #106		0.77 miles 2 bd / 1.75 ba 1,106 Sq. Ft.
	$150,000 15907 GODWIN Ct		1.18 miles 2 bd / 2.5 ba 1,002 Sq. Ft.
	$319,000 2929 West EDINGER Ave		1.3 miles 2 bd / 2.5 ba 1,309 Sq. Ft.
	$120,000 603 South NEWHOPE St #7		1.66 miles 2 bd / 1.5 ba 842 Sq. Ft.
	$249,900 17333 BROOKHURST St Unit E5		1.7 miles 2 bd / 2 ba 752 Sq. Ft.
	$499,900 1328 CORTE VENOSA		1.71 miles 3 bd / 2.5 ba 1,500 Sq. Ft.
	$214,000 2510 West MACARTHUR Blvd Unit H		1.78 miles 2 bd / 2 ba 1,177 Sq. Ft.
	$168,400 2526 West MACARTHUR Blvd Unit I		1.78 miles 1 bd / 1 ba 793 Sq. Ft