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32 Cards in this Set
- Front
- Back
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Tax Deductions
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Mortgage Interest Payments on first and second homes (for mortgage balances below 1 million or 500,000 if married filing separately
-real estate taxes (but not interest paid on overdue taxes) -certain loan origination fees -loan discount points -loan repayment penalities |
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Decision to buy or rent property involves considering what?
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-Time
-Financial Situatin -Housing Affordability -Mortgage interest Rates -Tax consequences of owning vs. renting property -home prices and tax laws |
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What is your mortgage consist of?
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PITI
Principal Interest Taxes Insurance |
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Planned Unit Development
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(PUDs) master planned communities merge housing recreation and commercial units into one self contained development-planned under special zoning ordinance
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PUD
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PUD can be a small development of just a few homes or an entire planned city
- Owners do not have direct ownership interest in the common areas. -Community Association is formed to maintain these areas with fees collected from the owner |
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Retirement Communities
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Structured as PUD
Residential units, shopping, recreational opportunities health care facilities |
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High Rise Mixed Use Development
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MUD's
Self contained area with office space, stores, theatres, and apartment units |
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Converted Use Properties
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factories, hotels barns schools that have been converted for residential use.
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Modular Homes
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-prefabricated homes
-Each room is preassembled at a factory driven to the building site on a truck and the lowered onto its foundation by a crane |
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Requirements for the calculation for the amount of a mortgage
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-Mortgage Payment PITI can not exceed 28% of gross
-payments on all debts can not exceed 36% of monthly income (not included insurance premium utilities and routine medical care. |
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Tax consideration for homesellers
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500,000 now excluded from the capital gains tax for profits on the sale of a principal residence by married tax payers who file jointly
-250,000 for tax payers who file as singles |
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Homeovwners
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-may deduct some or all of the mortgage interest paid.
-real estate taxes and certain other expenses. |
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1st time homebuyers
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penalty free withdrawals from IRA's for a down payment
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Broad form insurance
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fill in
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Basic Form Insurance
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fill in
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liability coverage
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coverage for injuries or losses suffered as a result to a trauma to a property sustained within the unit
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coinsurance clause
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usually requires that the owner maintain insurance equal to a specified percentage (80%) of the replacement cost of the dwelling (not including the pre land)
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co-insurance clause
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an owner may make a claim for the full cost of the repair or replacement of the damaged properly without deduction for depreciation or annual wear and tear.
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CLUE
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Comprehensive
Loss Underwriting Exchange database of consumer claims history that enables insurance companies to access prior claims informaiton in the |
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National FLood Insurance Act of 1968
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help owners of property in flood prone areas by subsidizing flood insurances.
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Army Corp of Engineers
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has prepared maps that identify specific flood prone areas throughout the country
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What do you need to finance property with federal or federally related mortgages loans?
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Must have flood insurance
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Where can insurance policies be purchased from?
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National Flood Insurance Program
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Exemption from the purchase of flood insurance
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borrower who can produce a survey showing that the lowest part of the building is located above the 100 year flood mark
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Definition of a flood
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general and temporary condition of partial or completion inundation of 2 or more acres or two or more properties
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Two types of flood policies
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RCV
Replacement Cost Valve ACV Actual Cost Valve |
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Flood Definition
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-an overflow of inland or tidal waves
-an unusual and rapid accumulation or runoff of surface waters. -mudflows/slides on the surface of normally day waves -collapse of land along the shore of a body of water (under certain conditions. |
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PUD
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PUD can be small development of just a few homes or an entire planned city.
owners do not have direct ownership interest in the common areas. -community Association is formed to maintain these areas with fees collected from the owner. |
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Planned Unit Development
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PUD's
master planned communities merge housing, recreation, and commerical units into one self contained development. planned under special zoning ordinance |
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Cooperative
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Fill in
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Condo
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Fill in
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Apartment Complex
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Fill In
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