sgip
Well-known member
2018 brings additional costs and concerns when considering a refinance. I'll add some data to this thread as more information flows, but to start:
1) A gift from Governor Moonbeam:
?California Building Homes and Jobs Act ? Affordable Housing Fee? Effective January 1, 2018 in California, the Building Homes and Jobs Act will impose a new $75 recording fee surcharge on every real estate instrument, paper, or notice recorded per transaction per parcel of real property, not to exceed $225.?
Translation: Your County Recording Fees for refinances will be going up to pay for affordable housing.
2) According to the Washington Post:
"Homeowners can refinance mortgage debts that existed before December 14th, up to $1m and still deduct the interest as long as the new loan does not exceed the amount refinanced".
Translation A: Some lenders will take a $500k loan and refinance at $510k to buy the rate down or pay for costs. If that's done, the $500k loan falls within the $1m deductibility, but the $10k does not. Even though the $10k isn't considered "cash out" by the lender, the IRS will consider it "cash out".
Translation B: No one knows 100 percent for sure how these new laws apply, so absolutely contact your CPA to get some sort of comprehensive answer before considering a refinance.
My .02c (so far...)
Soylent Green Is People.
1) A gift from Governor Moonbeam:
?California Building Homes and Jobs Act ? Affordable Housing Fee? Effective January 1, 2018 in California, the Building Homes and Jobs Act will impose a new $75 recording fee surcharge on every real estate instrument, paper, or notice recorded per transaction per parcel of real property, not to exceed $225.?
Translation: Your County Recording Fees for refinances will be going up to pay for affordable housing.
2) According to the Washington Post:
"Homeowners can refinance mortgage debts that existed before December 14th, up to $1m and still deduct the interest as long as the new loan does not exceed the amount refinanced".
Translation A: Some lenders will take a $500k loan and refinance at $510k to buy the rate down or pay for costs. If that's done, the $500k loan falls within the $1m deductibility, but the $10k does not. Even though the $10k isn't considered "cash out" by the lender, the IRS will consider it "cash out".
Translation B: No one knows 100 percent for sure how these new laws apply, so absolutely contact your CPA to get some sort of comprehensive answer before considering a refinance.
My .02c (so far...)
Soylent Green Is People.
