Huntsville Real Estate Blog

Attention, homebuyers!  According to the Baltimore Sun, long-term mortgage rates remain in a downward pattern, registering the third consecutive week of decline.

Freddie Mac currently lists the average interest on 30-year fixed loans at 5.69 percent—the lowest level since July 2005. Other rate declines include:

• 15-year fixed mortgages dropped to 5.21 percent from 5.43 percent a week ago.
• 5-year adjustable-rate average decreased to 5.4 percent from 5.63 percent.
• 1-year ARMs fell to 5.26 percent from 5.37 percent..

Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces—in which case they expect rates to decline further. 

This news makes it a great time to consider buying a home in Huntsville AL.  To learn more about Huntsville AL real estate, please call me at 256-508-0211 or visit MoveToHuntsville.com.  You may also begin searching for Huntsville real estate and homes for sale!

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We all know that tax season is right around the corner, so this week I wanted to spend some time covering issues related to paying taxes on vacation or investment homes.  Many homeowners in Huntsville either have a vacation home elsewhere or own an investment property in town – but can these homes truly be claimed as vacation properties when it comes to taxes? 

This article from RealEstateJournal.com answers this and other important questions, such as:

• When and under what circumstances do I have to pay taxes on rental income?
• What sort of deductions can owners of rental properties take?
• If my vacation home is considered a secondary home (not a rental home), what deductions can I take?

Once you have determined which category your property qualifies as, the chart below gives you a quick overview of what you should expect during tax season:

Other helpful links on this topic:

• IRS Publication 527: Residential Rental Property
• IRS Tax Topic 415: Renting Residential and Vacation Property
• IRS Publication 925: Passive Activity and At-Risk Rules

To learn more about Huntsville AL real estate, please call me at 256-508-0211 or visit MoveToHuntsville.com.  You may also begin searching the Huntsville MLS!

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