Marker Icon 16.pngMarker Icon 13.pngMarker Icon 18.pngMarker Icon 12.pngMarker Icon 0.pngMarker Icon 8.pngMarker Icon 17.pngMarker Icon shadow.pngMarker Icon center.pngMarker Icon 21.pngMarker Icon 7.pngMarker Icon 25.pngMarker Icon 20.pngMarker Icon 1.pngMarker Icon 2.pngMarker Icon 5.pngMarker Icon 22.pngMarker Icon 23.pngMarker Icon 10.pngMarker Icon 14.pngMarker Icon 3.pngMarker Icon 4.pngMarker Icon 6.pngMarker Icon 11.pngMarker Icon 24.pngMarker Icon 19.pngMarker Icon 15.pngMarker Icon 9.png

Kauai MLS Quick Search

to
to
to
to
to

Go to Advanced Search

Tim Mira, Realtor Broker - Kauai

Tim Mira, Realtor Broker

phone: (808) 639-2263
Contact by email

Cory Mira, Realtor (S) - Kauai

Cory Mira, Realtor (S)

phone: (808) 635-7809
Contact by email

Tax Law changes and affect for 2018

Add CommentAdd Comment

How the Newly Passed Tax Law 
Affects the Housing Market

President Trump today signed the Republican-led tax reform bill into law. Called the "Tax Cuts and Jobs Act" and passed by the U.S. Senate and House on December 20, the legislation will nearly double the standard deduction for individuals to $12,000 and married couples to $24,000 in the 2018 tax year. Here are ways the new law will affect current homeowners and those who are looking to buy or sell a home:

  • Mortgage interest deduction. Limits this popular deduction to $750,000 in mortgage debt for buyers who purchase a home on or after December 15, 2017. Those who purchased a home prior to this date can continue to deduct up to $1 million in mortgage debt. In 2026, this provision will revert to the current law regardless of when the home was purchased.
  • State and local property taxes. Limits this deduction to a combined $10,000. Homeowners in areas with higher home costs and property taxes may see an increase in their tax bills in the new year.
  • Home Equity Line of Credit (HELOC) interest deduction. Paid interest will no longer be deductible after December 31, 2017. This provision ends in 2026 and reverts to the current law, which allows an interest deduction up to $100,000 in HELOC debt.  
  • Capital gains exclusion. Home sellers can continue to exclude up to $500,000 (joint filers) or $250,000 (single filers) for capital gains when selling a primary home, provided the owner has lived in the residence for at least two of the past five years.
  • Estate tax. Doubles the amount that can be left to your heirs tax free to $11.2 million per person and $22.4 million for married couples.
  • Mortgage Credit Certificate (MCC) Program. Currently suspended but valid for loans that close by December 29, 2017, the MCC program may be reinstated in 2018. Be on the lookout for future updates. MCC offers eligible borrowers a federal tax credit and deduction on paid mortgage interest.      

 

 

Conforming Loan Limits Rising in 2018

http://files.constantcontact.com/95ac02fd401/c9ca0f36-c374-4a4b-8f58-dbda976d6b97.jpg

For the second year in a row, maximum conforming loan limits for conventional mortgages to be acquired by Fannie Mae and Freddie Mac will be increasing in 2018, according to the Federal Housing Finance Agency. In Hawaii and other high-cost areas, conforming loan limits will rise to $679,650 from $636,150 for one-unit properties effective January 1, 2018. In most of the country, the 2018 maximum loan limit for one-unit properties will be $453,100 from $424,100. Conforming loan limits also apply to government loans, including VA and FHA. 

 

2018 Conforming Loan Limits

County

Conforming Limit

High Balance Limit

Honolulu

$679,650

$721,050

Hawaii County

$679,650

$679,650

Maui

$679,650

$679,650

Kauai

$679,650

$713,000

Kalawao 

$679,650

$679,650

 

Click here to view a complete list. 

Benefits of Higher Conforming Loan Limits

  • Increased purchasing power. Allows first-time and repeat buyers to borrow larger amounts.
  • Better rates and terms. Conforming loans have lower down payment, more competitive interest rates, and less stringent underwriting standards compared to non-conforming (jumbo) loans.
  • More affordability. Reduces the need for non-conforming mortgages, which have higher interest rates and monthly payments.

From: Tony Cadiz NMLS #653663 Branch Manager Cell: 808-268-3399 eFax: 808-675-5491 tcadiz@MidPacLoansHI.com www.MidPacLoansHI.com 

thumb_2_TimMiraKauaiRealtor.jpg Article By:
Comments (0)