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Transfer Tax
First time buyer potential tax savings on closing costs: DC: .375% to .725 of purchase price MD: .25% of purchase price. In Maryland, home buyers who’ve never owned real estate in the state and are buying a primary residence are exempt from the state transfer tax, which saves .25% of the purchase price in…
Read MoreUnderstanding Closing Costs
There are five primary categories of closing costs: Lender fees Title Attorney costs, including title insurance Transfer taxes to local government Real Estate Agent Commission/Fee Upfront deposits for escrows and prepaids In addition to the main categories, there are going to be miscellaneous costs which vary by transaction. For instance if you are buying a…
Read MoreHome Ready and Home Possible
There are two really great loan programs offered by Fannie Mae (Home Ready) and Freddie Mac (Home Possible) that combine low down payment loans with superior mortgage terms. These products even have better terms in many cases than standard conventional financing at a variety of down payment amounts. Program Highlights: 3% Down minimum for loan amounts up to…
Read MoreMedpal
Full time employees of Montgomery County and buying in Montgomery County may be eligible for Medpal, which provides a $25,000 forgivable down payment/closing cost assistance loan. This program is a part of the Maryland Mortgage Program but is an enhancement of the product, but only for county employees of certain departments. The assistance cannot…
Read MoreTax Advantages
I am not a tax advisor – but I often get questions about the tax advantages of home ownership. The below deductions assume you choose to itemize your deductions instead of taking the standard deduction. Here are the benefits: Deduct interest: When filing your income taxes, you may deduct the interest you pay on your…
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