HDTenEightyP/NetNews huggingface dataset:
From: pjh@mccc.edu (Pete Holsberg)
Subject: Re: refinancing rates
Organization: The College On The Other Side Of Route One
Date: Mon, 31 Aug 1992 18:26:12 GMT

In article <1992Aug30.143841.27266@mccc.edu> pjh@mccc.edu (P. J. Holsberg) writes:
=In line with that, I have a question of the advisability of refinancing
=in my current situation:
=
=The original mortgage was for $60,000 at 10.25% taken out in May, 1990.
=The mortgage company that originated our loan is advertising 15 year,
=7.125%, 3 points refinancing with a $345 application fee.
=
=Would someone please do the calculations and let me know their opinion
=of wether or not I should refinance at this time? And do post your
=numbers, OK?

I misstated that request rather badly, as evidenced by some of the email
I got. :-)

I can do a simple mortgage calculation, but what I'm looking for is a
discussion of the issues I'm not really aware of. For example, if
closing costs $4000, what affect does taking that money out of a current
investment have on the cost of refinancing? I'm sure that there are
other questions I might ask.

What I'm looking for is for one of you experts to clue me in on what to
consider when making this decision, and point out what calculations
need to be made. I had simply assumed that it would be easier for one
of you to just make the calculations that to go through a detailed
explanation/analysis.

One fellow sent me two programs, saying, "If you teach a man to fish,
he'll eat today, but if you give him a fish, he'll have food all his
life." I guess he meant a pair of fish, one of each sex??? ;-)

Thanks,
Pete
From: bills@sequent.com (Bill Sears)
Newsgroups: misc.invest.real-estate
Subject: Re: Closing cost tax deductibility.
Date: 27 Aug 92 23:57:26 GMT
Article-I.D.: sequent.1992Aug27.235726.17467
Distribution: usa
Organization: Sequent Computer Systems Inc.

In article <1992Aug27.220155.27152@usenet.ins.cwru.edu> bd670@cleveland.Freenet.Edu (Russell I. Dyreng) writes:
>
>As you can see there are as many opinions of how this works as
>there are people who care to respond.  It might not be a bad 
>idea to call either your tax preparer or the IRS for the 
>straight poop.

The is one bit of good advice.  Another bit is to obtain a copy of
Publication 17.  This has everything (or almost everything) that you
need to know to file an individual tax return.  This question should
be covered pretty well, there are problems when you get into really
obscure questions regarding pensions and stuff.

My opinion is based upon the fact that loan origination fees are
dealt with the same way as points for a principal mortgage (i.e.
they are deductible in the year in which they were paid).  I would,
therefore, conclude that the loan origination fee would be deductible
over the life of the loan (refinances are different in this respect).
My best advice is to get Pub. 17 and read the mortgage refinance
section CLEARLY AND COMPLETELY.  There is another Pub which deals
only with mortgages, etc., but I don't know that number off the top
of my head.

  bills
From: bobk@sequent.com (Bob Krull)
Newsgroups: misc.invest.real-estate
Subject: Re: Closing cost tax deductibility.
Date: 25 Aug 92 21:05:54 GMT
Article-I.D.: sequent.1992Aug25.210554.13315
Distribution: na,local
Organization: Sequent Computer Systems Inc.

In article <1992Aug25.111311.3627@arizona.edu> smith@navajo.rc.arizona.edu (dennis smith) writes:
>Recently I refinnace my mortgage and it cost me around $2200. I did not
>pay any points (except for %1 origination fee, which is very common here
>in Arizona). My question is this,
>which expenses are tax deductable for 1992 and years after, if any ?
>(origination fee, appraisal fee, title insurance and guarantee, title
>search, termit inspection and termit treatment, etc.). I actualy had to
>treat my home since there was some sign of termit infestation. By the
>way I included most of the costs in the new mortgage. Does it make any
>difference. Thanks a lot.
>
>Dennis.


Simple.  NONE of the costs associated with a refinance are deductible on
your federal income tax.  As always, free advice is worth the price.
Consult your accountant.

Bob Krull
From: patcc@hpcc01.corp.hp.com (Pat Chan)
Date: Thu, 27 Aug 1992 22:26:54 GMT
Subject: Re: Foreclosures in Bay Area
Organization: the HP Corporate notes server
Newsgroups: misc.invest.real-estate


I like to have the same information too. I would appreciate if you could
include my e-mail address in any correspondence.

Thanks in advance,

pc

Newsgroups: misc.invest.real-estate
From: harrism@aquila.rtp.dg.com (Mike Harris)
Subject: Re: Septic Systems
Date: Thu, 27 Aug 92 12:01:05 GMT
Reply-To: harrism@dg-rtp.dg.com
Organization: Data General Corp., Research Triangle Park, NC

In article <1992Aug25.003927.17366@adobe.com>, kendall@adobe.com (Janice Kendall) writes:
|> We are in escrow on a house with a septic system.

	I had similar trouble with mine and thought I was in for big
	bucks repairs. Turns out that the tiling was clogged with roots
	just 30 feet down (out of 600 feet). Clearing that left me with
	absolutely no problems.

	The "easy" way to tell is to start at the head of the tiling and
	trace the pipe - use a rod on a T handle to poke down and find
	the pipe. Dig it up every 20 feet, every switch back, or whatever
	interval is convenient. Look for signs of use. In my case it was
	damp after the clog, but the next hole showed a dusty, bone dry
	pipe - indicating zero use. $100 for the roto rooter man and I
	was back in business.

	If it had backed up as severly as the septic guy said then the
	sediment may be in the lines. They can pump this as well, but
	it may not ever be back to normal. Digging up the line will
	help you determine this as well.

	When you cut it open, cut a U opening - don't remove the flap.
	To close, cover it with an over-length half slice of tiling pipe.
	This will keep the dirt out. Re-assemble in reverse order.

	Hope this works for you. *Don't* gamble on the system before
	closing as it can cost you dearly.

	regards, Mike
Newsgroups: misc.invest.real-estate
From: gibbons@libra.suneng (Alan Gibbons)
Subject: Re: Closing cost tax deductibility.
Originator: root@mogate.sps.mot.com
Reply-To: gibbons@chdasic.sps.mot.com
Organization: Motorola ASIC Division
Date: Thu, 27 Aug 1992 23:43:59 GMT


In article 13315@sequent.com, bobk@sequent.com (Bob Krull) writes:
>In article <1992Aug25.111311.3627@arizona.edu> smith@navajo.rc.arizona.edu (dennis smith) writes:
>>Recently I refinnace my mortgage and it cost me around $2200. I did not
>>pay any points (except for %1 origination fee, which is very common here
>>in Arizona). My question is this,
>>which expenses are tax deductable for 1992 and years after, if any ?
>>(origination fee, appraisal fee, title insurance and guarantee, title
>>search, termit inspection and termit treatment, etc.). I actualy had to
>>treat my home since there was some sign of termit infestation. By the
>>way I included most of the costs in the new mortgage. Does it make any
>>difference. Thanks a lot.
>>
>>Dennis.
>
>
>Simple.  NONE of the costs associated with a refinance are deductible on
>your federal income tax.  As always, free advice is worth the price.
>Consult your accountant.
>
>Bob Krull

Are any costs deductible with the purchase of a new home (ie: from a builder) ?

-Alan
Newsgroups: misc.invest.real-estate,misc.taxes
From: eroth@cbnewsf.cb.att.com (elizabeth.s.roth)
Subject: Re: Tax deduction for unmarried co-buyers?
Organization: AT&T
Distribution: usa
Date: Wed, 26 Aug 1992 15:44:29 GMT

In article <1992Aug25.120227.17871@cbnewsl.cb.att.com> rlt@cbnewsl.cb.att.com (r l taylor) writes:
>I've been asked to post this question for some friends without
>net.access.  I know (and they know) that their best bet is probably
>to talk to a tax lawyer, and they plan to do so before closing.
>But, in case y'all have any answers, here goes:
>
>In the case of an unmarried couple purchasing a house jointly,
>what happens wrt tax deductions for points, mortgage interest, and
>property taxes?  Can they each claim half the points & interest on
>their Federal returns, can one claim the whole thing (providing the
>other agrees) or are they out of luck?  This is in New Jersey, which
>does not recognize common-law marriages, if that makes a difference.
>(Since our state property tax rebate seems to have gone by the way-
>side, they're probably out of luck there, regardless.)  How does
>this scenario differ from a married couple filing individually?
>Also, if the federal tax credit for first-time buyers goes through,
>can they each claim half?  Both are first-time homeowners.
>
>For what it's worth, the mortgage and title will be in both names.
>They will probably try to open a joint checking account for the 
>house payments, utilities, etc.  I think the arrangement is "joint
>tenancy with right of survivorship";  does that sound right?
>
>Any feedback (including recommendations for good tax lawyers in
>northern NJ) would be appreciated.  Email or post;  I'll summarize
>if there's enough interest.  Thanks in advance.

My (NOW) husband and I did that very same thing.  We still own the NJ
house (it's for sale :-)  We bought it with the title stating 
"single man, as to an undivided 1/2 interest" and "unmarried woman,
as to an undivided 1/2 interest".  We then claimed half the interest,
taxes, etc on each of our tax returns.  We never kept a separate 
checking account but I think it might be a good idea.

-- 
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>=<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
> Education never helped morals ... the    -- WILL           (all the usual   <
> smarter the guy, the bigger the rascal.  -- ROGERS          disclaimers)    <
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>=<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
From: connors@hplabsz.hpl.hp.com (Tim Connors)
Newsgroups: misc.invest.real-estate
Subject: Re: 15 year vs. 30 year loans
Date: 25 Aug 92 20:56:13 GMT
Article-I.D.: hplabsz.1992Aug25.205613.6850
Distribution: usa
Organization: Hewlett-Packard Laboratories Palo Alto,CA

In article <75970005@hpcc01.corp.hp.com> loftis@hpcc01.corp.hp.com (Kirk Loftis) writes:
>
>	Now for the truly adventurous.....has anyone tried to look at a
>30-year adjustable, but paying it off in the accelerated manner as
>described in the 30-year fixed.
> . . .
>The reason it is interesting, is because the you can pay off a lot of
>principal in the beginning, then as the rate goes up, it "should" be
>re-calculated at the new principal.  

I'm currently in the process of refinancing (who isn't?) and I've decided
to do the following.  I'll be adding cash so that the new loan balance
is less than the current loan's outstanding balance.  The new loan will
be a fixed 5/25 convertable.  Since the interest rate will change (only once)
after five years, the risk to the lender is lowered.  Thus this loan has
a lower rate than a straight 30 year fixed.  The combination of extra low
rate and lower balance will allow me (using larger than necessary payments)
to nearly pay off the loan in five years.  Thus the risk of the
"after adjustment" rate being high is too not great.

-Tim
(Yes, I've been in the place awhile so the outstanding balance isn't that
big.)
Newsgroups: misc.invest.real-estate,misc.consumers.house
From: doshay@ursa.arc.nasa.gov (David Doshay)
Subject: Re: Buying Undeveloped Land
Keywords: The land Scarlett, it's the only thing....
Organization: NASA-Ames Biocomputation Center
Distribution: usa
Date: Thu, 3 Sep 1992 20:31:32 GMT

Talking with a developer led to this important point:

Have the seller carry the mortgage with a prevision that the mortgage on
the land will subrogate (sp?) to a construction loan. You see, the only way
you will get a construction loan from a bank is if it is the first. That
will keep the bank first in line if you default. Banks like that. Most land
for sale has been held for a while, so asking the owner to carry the loan and
slip down to #2 when you build is no big deal. Then when you are done building
you refinance the whole package and pay off the previous landowner. That way
you get back to the lower interest rates charged on owner occupied property.

David		doshay@soma.arc.nasa.gov

The thought police insist I tell you:
my thoughts, not NASA's
Newsgroups: misc.invest.real-estate
From: wicklund@intellistor.com (Tom Wicklund)
Subject: Re: Closing cost tax deductibility.
Organization: Intellistor, Inc.
Distribution: na
Date: Wed, 26 Aug 92 22:08:18 GMT

In <1992Aug25.111311.3627@arizona.edu> smith@navajo.rc.arizona.edu (dennis smith) writes:

>Recently I refinnace my mortgage and it cost me around $2200. I did not
>pay any points (except for %1 origination fee, which is very common here
>in Arizona). My question is this,
>which expenses are tax deductable for 1992 and years after, if any ?
>(origination fee, appraisal fee, title insurance and guarantee, title
>search, termit inspection and termit treatment, etc.). I actualy had to
>treat my home since there was some sign of termit infestation. By the
>way I included most of the costs in the new mortgage. Does it make any
>difference. Thanks a lot.

The 1% origination fee is deductable over the life of the loan.  This
means if your origination fee was $1000 and a 30 year loan, you can
deduct $33.33 per year for 30 years.  I don't know what happens if you
sell before the end of the loan, you can probably deduct the balance
at that point.

I don't think any of the other costs are deductable.  You might be
able to add some to the basis for the house, but check a tax guide or
tax advisor.  These costs may be added to the basis of a new purchase
but I don't know what applies to a refinance.

The terminte treatment probably can't be added to the basis either
since it's maintenance, not an improvement.
Newsgroups: misc.invest.real-estate
From: chet@spock.retix.com (Chet Mazur)
Subject: Re: Closing cost tax deductibility.
Organization: Retix, Santa Monica
Distribution: na,local
Date: Wed, 26 Aug 1992 02:11:02 GMT

I believe refi costs are deductable but need to amortized over the
life of the new note..
--

Chet Mazur (chet-mazur@retix.com)

-- 

Chet Mazur (chet-mazur@retix.com)
From: bd670@cleveland.Freenet.Edu (Russell I. Dyreng)
Newsgroups: misc.invest.real-estate
Subject: Re: Rental Property Depreciation
Date: 2 Sep 1992 21:55:53 GMT
Organization: Case Western Reserve University, Cleveland, Ohio (USA)
NNTP-Posting-Host: slc5.ins.cwru.edu


ferguson@tc.fluke.COM (Ed Ferguson) writes:

>As long as depreciation is being discussed here, I
>have a question: If you intend to rent your existing
>home and purchase another to live in, what amount
>is used for depreciation?  Is it the appraised value
>of the structure when it becomes a rental, or is it your
>original purchase price (minus land value)?
>
>Before you advise to see a tax expert, I am simply
>designing a spreadsheet to see if becoming a land-
>lord is worth it before I seek further professional
>advice.
>
>Ed Ferguson

The basis for depreciation is usually taken to be the original
cost of the property.  I believe though, that if the property
is appraised at below acquistion cost that the appraised value
is then used.

Russ
bd670@cleveland.freenet.edu
Newsgroups: misc.invest.real-estate
From: richv@hpinddu.cup.hp.com (Rich Van Gaasbeck)
Subject: Comparing indexes of adjustable loans
Date: Tue, 1 Sep 1992 20:59:36 GMT
Organization: Hewlett-Packard, Cupertino, CA.


How do you compare adjustable mortgages that use different indexes?  I
would like to know relative volatility and historic values so that I
can compare.

Also I would like to know what economic factors effect the indexes and
how they are related (for instance if banks borrow money at the 6m CD
rate and loan it at the 6m T-bill rate then one could assume that the
6m CD rate would tend to be lower than the T-bill rate).

Please email replys.

Rich Van Gaasbeck
richv@cup.hp.com
From: jyl@burgess.eng.sun.com (Jacob Levy)
Newsgroups: misc.invest.real-estate
Subject: RTC Federal Deposit Libraries and Asset Sales Calendar
Date: 1 Sep 92 19:07:48 GMT
Reply-To: jyl@toss.eng.sun.com
Organization: State Retirement Home for Retarded Slugs
NNTP-Posting-Host: burgess

One additonal piece of information: When you call 1-800-RTC-3006 (for the
touch-tone-challenged this is 1-800-782-3006) you can ask for the address
of a Federal Library in your area that has the RTC asset listings. You'll
be asked the ZIP code of the area in which you live, and will be given the
street address and phone number of a library close by to you that carries
the whole asset listing.

When you call the above 800 number you can also get a calendar of auctions
in your area. These will generally be absolute auctions.

--JYL
From: osr@cbnewse.cb.att.com (omar.suarez)
Subject: house for sale in Aurora, Il.
Organization: AT&T
Distribution: il
Date: Wed, 2 Sep 1992 12:16:57 GMT
Followup-To: poster
Keywords: house for sale



Where:		Aurora, Il.
Bedrooms:	3
Baths:		1.5
Exterior:	brick front, Aluminum siding
Style:		ranch
Garage:		2 car attached with electric door opener
		and insulated steel door
Heat:		gas forced air; gas water heater
AC:		central

Comments: Concrete driveway, tile in foyer and bathroom, surrounded
by a rose garden, oversized lot, open floor plan, roomy closets, lots
of storage space, oak trim, neutral decor, extra large patio,
Pella windows, country kitchen, pull down stair to partially floored
attic, extra large utility room, 15 min drive to Bell Labs (less if
going on the tollway).

Spotless home located in secluded subdivision, 2 blocks from I88.
Enjoy the view and the fragrance of our roses.  Blooming lilacs border
the property.

Price:	realtor's market analysis results: $109,900, I will rather give
the commission to you, the buyer, than pay it to the realtor.  Asking
$ 105,000;  (before listing it with the realtor).

For more information contact:

O. Suarez		Tel: (708) 979-3726
email:	att.com!ihlpm!osr

NOTE: to John A. message bounced back when trying to resopnd.
Newsgroups: misc.invest.real-estate
From: steinman@is.morgan.com (Jan Steinman)
Subject: Re: Real Estate News Summary, Part 115
Organization: Morgan Stanley & Company
Distribution: usa
Date: Mon, 31 Aug 1992 14:35:39 GMT

   Gordon Hamachi (hamachi@adobe.com) wrote:
   : Real Estate News Summary, Part 115, July 1992
   : 
   : 
   :903. In Southern California, Bekins Moving and Storage reports 3 trucks leaving
   :      for every loaded truck coming in.  To meet demand, firms deadhead trucks
   :      into the state, and offer low rates to incoming clients.  U-Haul says the
   :      first half of July, saw an 18% rise over last year in outbound traffic
   :      from Southern California.  California has been an "outbound" market for
   :      over 2 years, say Atlas Van Lines and others.  Ryder says residents are
   :      exiting the state more than ever before.  Big destination states include
   :      Washington, Texas, Arizona, Oregon and Colorado.  [Wall Street Journal]

Last fall, we took a six-month consulting contract in Southern
California. We called U-Haul and got a quote on your standard 4x5x6
utility trailer: $39.95.  "Great!" I thought, but then got suspicious.
The local U-Haul would not tell me what a trailer back would cost, but
gave me an 800 number, which gave me an LA number that I called:
$379.95 to get the trailer back.

I bought a used trailer for $175 and used it both ways, although I
was sorely tempted to try to sell it in LA for, say, $1000 or so? :-)
--
: : Jan Steinman	   steinman@is.morgan.com		 Bytesmiths : :
: : 2002 Parkside Court				   West Linn, OR 97068-2767 : :
: : 503/657-7703					       212/956-8722 : :
Newsgroups: misc.invest.real-estate
From: asylvain@felix.filenet.com (The Chipmunk)
Newsgroups: misc.invest.real-estate
Subject: Re: Need help with rental depreciation
Date: 25 Aug 92 23:05:05 GMT
Reply-To: asylvain@fritz.filenet.com (The Chipmunk)
Organization: Foundation for the Increased Wealth of Chipmunks

Written in article <1992Aug24.175244.8908@nb.rockwell.com>
 by guthrie@nb.rockwell.com (Karen Guthrie):

: Go get a good book like JK Lassers tax guide. There is a set number 
: of years that you depreciate the property over ( I think it is 15 or 30)
: for real estate.

This number changes with the political climate of the times.  I believe,
with tax "reform" of 1986, it became 29 and a half.

-- 
The Chipmunk.
Opinions are mine, void where prohibited, taxed, licensed or regulated.
Just remember: when you go to court, you are trusting your fate to
twelve people that weren't smart enough to get out of jury duty!
Newsgroups: misc.invest.real-estate
From: TDOPER35@ysub.ysu.edu (Dogger)
Subject: Help! New landlord to be
Organization: Youngstown State University
Date: Fri, 4 Sep 1992 10:33:08 GMT

I am thinking about buying my mom's condo (it is paid off). Then renting it bac
k to her for the rest of her life. she would make rent payments with the gain o
n the house (she is 66) and would use her one time tax exclusion. we would sign
a lease so that she has a right to stay there until she passes on.  I would mak
e the mortgage with the rent. i could deduct interest, repairs, deprec. & taxes
. Is this a good idea?  do i want to break even or have a neg. or pos. cash flo
w? Also can i tell the bank that i already gave her the down payment, so i don'
t have to put up any money? Or will they require me to put the down payment dow
n?  Thanks for your help??
 
                          DOGGER
Newsgroups: misc.invest.real-estate
From: guido@island.COM (Guido Marx)
Subject: Re: Closing cost tax deductibility.
Organization: Island Graphics Corp.  San Rafael, Ca.
Distribution: na,local
Date: Thu, 27 Aug 1992 16:52:02 GMT

In article <1992Aug25.210554.13315@sequent.com> bobk@sequent.com (Bob Krull) writes:

>Simple.  NONE of the costs associated with a refinance are deductible on
>your federal income tax.  As always, free advice is worth the price.
>Consult your accountant.

I would definitely consult a tax advisor since I believe that the 
costs of a refinance ARE deductible.  If the refinance was done
for the purpose of making improvements to the house or to complete
the original sale (say you bought a house and the owner took back
a second amortized over 30 years, due in 3) you can write off the
points in the year you pay them.  If it is just a straight refinance
to take advantage of lower rates, you can write off the points, but
you have to amortize them over the life of the loan (so if you
paid $3000 in points on a 30 year loan, you could only deduct
$100 of the points every year :*(  )  

Guido
Newsgroups: misc.invest.real-estate