Repealing the mortgage interest deduction would yank the safety net from millions of Americans – not just the rich.  This is one of the high-wire acts to lower the deficit and raise taxes!!  The economic benefits of a strong housing market are clear.  For over 40 years housing has contributed 17-19% to the national gross domestic product.  HOME OWNERSHIP remains the greatest TOOL for WEALTH CREATION FOR FAMILIES.  It is the foundation of strong families and healthy communities.  Strong correlation among positive community involvement, neighborhood stability, children’s educational success and even physical and psychological health.  The greatest share of mortgage interest deduction lies with the MIDDLE CLASS and not the rich.  22% went to households in the $50,000 to $75,000 range.  According to Al DelliBovi, president of the Federal Home Loan Bank of NY,  we do not need to force such a daredevil act on the American public.

“People are carryong on with life”, says Lorri Loggins, broker and President Greater Tyler Association of Realtors.  “With interest rates at historical lows, buyers are able to purchase more, hence the medial price increases.  Tyler is a great place to live”.  The median home price in March was $143,375, a 5.42% increase from the $136,000 median price home a year ago, but a trifle lower than the month before.  Home showings in homes above $500,000 have picked up as well as in the lower price ranges.  The Tyler area’s home inventory stood at 10.4 in March, which is a high inventory and everyone is hoping the pick-up in activity will move some of this inventory.   Properties closer to the city limits of Tyler and nearer the median price are moving quicker.   Still takes an average of 114 days to get a property sold.  There is also an increased interest in building custom homes + some builders are starting spec homes in the area.

Folks are now looking at buying homes with inventory shrinking and interest rates still low.  Follow these 4 steps to keep from being “house poor” with a too large house payment.  (1)  RUN YOU OWN NUMBERS.  Figure monthly payment, including taxes and insurance + maintenance.  Then figure how much of your monthly income can go toward all these expenses.  Ask your mortgage lender for the same information and compare.  (2) START YOUR HOUSE HUNT LOWER THAN YOUR TOP DOLLAR.  In some markets houses are going for over asking price and you need to know where to stop.  (3)  HAVE YOUR MORTGAGE PRO DO A LAST-MINUTE BUDGET CHECK BEFORE YOU WRITE AN OFFER.  Ask your mortgage pro to run a last minute budget check as it may have months ago when he/she did the last one.  Not a good idea to buy a boat while trying to get a mortgage loan or any other large purchase. (4)  THINK OF YOUR HOUSE AS THE LAUNCH PAD FOR THE REST OF YOUR LIFE.  Your home is not the cornerstone of your value as a human being – no possession is.  It should be the backdrop for the rest of your life to enjoy with your family.  Again don’t get “house poor”!

For borrowers of loans to buy a home the ABILITY – to – REPAY rule’s key requirements are:  (1)  FINANCIAL INFORMATION MUST BE SUPPLIED AND VERIFIED.  Lenders must document borrowers’ employment, income, debt obligations, credit history, etc.  Lenders can no longer offer “low-doc” or “no-doc” loans.  (2)  A BORROWERS MUST HAVE SUFFICIENT ASSETS OR INCOME TO PAY BACK THE LOAN.  Lenders must evaluate a consumer’s debt-to-income ratio to determine if he or she can afford the loan.  (3)  TEASER RATES CAN NO LONGER HIDE A MORTGAGE’S TRUE COST.  Lenders must base their evaluation on a consumer’s ability to repay the principal and interest over the long term – not just during an introductory teaser rate.  BEFORE CLOSING lenders need to show no excess upfront points and fees, no toxic loan features and a cap on how much income can go to debt.  All of this from the Consumer Financial Protection Bureau’s (CFPB’s) Ability-to-Repay rule, which will go into effect January 2014