The Federal Tax Credits Blog

Posts Tagged ‘finance’

The Obama administration’s “Making Home Affordable” Program has been in the headlines since its announcement in early March. Attending to both refinancing and loan modifications, the program gives struggling homeowners additional options as they decide on the best options to lower their mortgage obligations, catch up on payments, and stay out of foreclosure. The program has also raised a lot of questions, so here are some of the more frequent ones being asked around the internet.

Q) Which lenders are offering the program?

A) The program was implemented first at FNMA and FHLMC and is expected to roll out to lenders across the country over the next several months. Lenders participation is voluntary unless they accepted FSA/TARP (bank bailout) funds. Those lenders will be required to offer refi’s and loan modifications under the program’s guidelines.

Q) Is there a limit on the size of the mortgage that can either be refinanced or modified?

A) A mortgage must be $797,000 or less to be eligible.

Q) Will a loan modification or refinance hurt my credit score?

A) Credit scores under the program won’t be affected as the homeowner’s mortgage is essentially being re-written. However, circumstances related to either refinancing or modifying could have an effect. For instance, missed payments leading to a modification would definitely hurt a credit score. On the upside, lower mortgage payments could give a homeowner the opportunity to pay down other debts, resulting in a better credit score over time. 

Q) Is it possible that my mortgage payments could actually go up?

A) It’s possible. Homeowners still in the “teaser rate” phase of their mortgage are one group that could see an increase. The program’s base rate of 2% and caps on the ratio of mortgage payments to income should mitigate the increase. Another group of homeowners that would be very likely to see a payment increase is the one with negative amortization loans. Re-working those mortgages into amortizing loans could raise payments significantly. Despite the potential of increased payment obligations under either option, it could still make sense to refi or modify if the change results in a “lesser of two evils” scenario where payments go up but as much as if the homeowner does nothing. Payments can be gauged at the government’s web site at http://www.makinghomeaffordable.gov

Q) Does the program expire?

A) Yes. The Making Home Affordable program expires on June 10, 2010, which gives homeowners, especially those mentioned in the situations in the previous question, some time to sit on their lower payment schedule before adjusting upward. 

Q) Can I do a refinance or loan modification on my own?

A) A qualified yes. Either can be done as a “do it yourself” but there are many issues to consider. One issue is simply the time involved in getting the project completed. Lender’s hours of operation are typically very similar to those of people working a regular 9 to 5 schedule. If a homeowner can’t put time in to the project during work hours it will require time over lunch and after work, if that’s possible at all. A do it yourselfer should allow for plenty of time to learn about each process, phone/hold time with the lender, and for paperwork. The second issue is that a refinance or loan modification is still a negotiation. Hiring an attorney to wring out the best terms possible could make the fees involved a very worthwhile investment.

Administration in ‘preventive role’

BEDFORD — Citing what she called “an era of taxpayer protection,” Lt. Gov. Becky Skillman said writing property tax caps into the Indiana Constitution is the admi …

Sen. Hansen Clarke Earned Income Tax Credit PSA

Canada is the most popular countries for immigration now. People from all over the world plan to settle down in Canada due to the excellent career opportunities, living standards and the social benefits this country offers to its residents. Everyone wants to immigrate to Canada for better opportunities and prosperity for their families. Here the immigration rules are easy and if applied for a visa through an immigration consultant or immigration lawyer, your dream to settle down in Canada can become true within days.

Life Time Free Medical:

Canada has one of the best health systems in the world. Each and every citizen is benefited by health insurance plan of the province where he or she resides. The health plans are funded by tax measures and these health plans allow citizens to avail the best quality health services including doctors’ fee and hospital charges. In fact, all immigrants are also applicable to access these free health services provided by the Government. If you are above 65 years of age, you can get all your prescribed drugs free. Besides, there are major provisions for old age pension, family allowance, unemployment insurance and welfare.

Best Quality of Education

Canada is a very developed country and one of the main reason behind this is its education policies. It has got a plan for free primary and secondary education and subsidized post-secondary studies. In Canada, it is essential that every child attends school till the age of 16-17 years. The children go to public schools, free of cost. The education expenses are borne by the provinces where the students reside. The rules and regulations of educational system vary from province to province.

Plenty of Child Benefits

If you have a low monthly income, your child will get the benefit of monthly payments from the Government for better life and higher education. In Canada, even people with low income can give their best to their children.

Multi-culture

Canada supports multi-culture, this means here immigrants can follow their own unique culture. Due to the diversity of cultures existing together here, Canada is the first choice amongst people who wish to settle down in some other country. The various customs, traditions, ritual and culture make Canada world’s best multicultural country to live in. You can find here different manners of dress styles, food preferences and customs.

Door of Opportunities :

The immigration policy of Canada is one of the reasons behind the economic growth of this country. Here people from all over from world come and contribute towards the development of the country. Business firms can also come and establish their business offices here.

A Paradise to Live in:

Canada is a land of great beauty full of vast forests, mountain ranges, lakes, national parks and various other natural resources. Apart from natural beauty, Canada has also got the world’s tallest building, highly advanced roads and other quality infrastructure.

There are many benefits associated with settling down in Canada. Therefore do not hesitate if you want to live in Canada. Take help of any reputed immigration consultant or immigration lawyer to help you with all your immigration problems and settle down in Canada safely.

‘The budget gap has to be closed fairly’

The Globe invited the four party nominees for governor to participate in a sit-down interview with Globe editors and reporters for a wide-ranging conversation about the issues and their candidacies. Green Party candidate Jill Stein, Libertarian Carla Howell, and Democrat Shannon O’Brien agreed to the interviews, while Republican Mitt Romney declined. What follows are excerpts of the conversation …

Dion Economic Vision Part 1 of 2

Question: Help with Turbo Tax child tax credit please…?

Shouldn’t one have the entire 1000.00 added to the refund amount? When I am working on our taxes, it says our son qualifies and it says for 1000.00. However, only 107 is added to our refund. On the form view I can see that the child credit is 893 with an additional child tax credit of 107. It’s not making sense to me so if anyone can be of some help I would really appreciate it. Thanks a lot in advance.

Answer: The CTC reduced your tax liability to $0. Before the CTC was applied, your tax liability $893 and the CTC wiped that out. Anything beyond that is lost as the CTC is not a refundable credit.

However your income was high enough to qualify for the Additional child tax credit. That IS a refundable credit that can replace a portion of the lost CTC, up to the entire lost amount. That’s what happened in your case.

Hey there, Delilah, welcome to the new year

Grand View Hospital hosted the first baby in 2010 in the area

Thiele Tax Credit 0001for view