You Don’t Have To Give An Arm To Get A Lower Rate

As mortgage rates rise, more homeowners are considering adjustable-rate mortgages (ARMs). Talk to your mortgage professional about the pros and cons for YOUR specific situation!

Rising interest rates compounded with increasing home prices are causing affordability issues for many buyers. To keep payments low, you won’t have to give an arm, but more buyers are considering getting an ARM, adjustable-rate mortgages.

Mortgage rates are near their highest point since 2009. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months,” said Sam Khater, Freddie Mac’s Chief Economist.

A $400,000 home with a 10% down payment and a 30-year term has the choice of a 5.27% fixed-rate or 3.96% for a 5/1 adjustable-rate mortgage. The principal and interest payment will be $1,992.40 for the fixed-rate and $1,710.40 for the adjustable rate saving the buyer $281.99 per month for five years.

There is an additional saving for the buyer choosing the adjustable-rate mortgage because the unpaid balance at the end of the five-year first period is $6,429 less than the fixed-rate. The total savings to the buyer on the adjustable-rate during the first period is $23,348 or $389.13 per month for sixty months.

At the end of the first period, the rate on the mortgage can adjust according to the then, current index plus the margin subject to the caps as specified in the note. These safeguards remove control from the lender or servicer from arbitrarily raising the rate.

The caps restrict the payments from going up more than a certain amount at each period or overall, for the life of the mortgage. A common cap might be that it cannot adjust more than 2%, up or down, at any given adjustment period or 6% above or below the initial note rate.

Adjustable-rate mortgages must adjust downward if the index indicates a reduction at the anniversary of the adjustment period. The overall trend has been lower rates for the past thirty years until recently.

Using an Adjustable Rate Comparison tool, you can project a breakeven point to determine at what point the ARM would be more expensive than the fixed-rate, assuming a worst case situation where the rates would increase the maximum at each period.

In the case of the previous example, the breakeven would occur at 7 years and 6 months. This means that if the buyer were to sell the home prior to that projection, the ARM would provide the cheapest cost of funds to purchase the home. On the other hand, if the buyer knew they would stay longer than that, it might be a safer option to go with the fixed-rate.

It is good to be aware of available options when financing a home. Analyzing, using the best information available, can help you make an informed decision. Make your own comparison using our ARM Comparison. Current interest rates can be found on Freddie Mac.

McKee Smith, REALTOR®, has been helping people like you sell and buy homes in the DFW area for many years. He is very knowledgeable about the housing market in Dallas and Fort Worth. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!

Helping Local Educators Get New Homes!

Better than a thousand days of diligent study is one day with a great teacher.”

Japanese Proverb

Here in Texas, schools are the tendons that tie our communities together. You cannot have schools without teachers. Teachers are vital members of any community.

In today’s real estate market, it is tougher than ever for teachers to get into the homes they want and need. To help, I will give licensed teachers at public schools $500 toward their closing costs if they use me as their REALTOR® and sign a buyer representation agreement between now and August 31, 2022.

But there’s more. If a teacher uses Charles Mentesana of Service First Mortgage, Service First will offer $500 in savings toward lender fees. That is a combined savings of $1,000! Limitations apply – see the details in this flyer.

Time is limited, so let’s start looking today. Fill out the information below and I will give you a call to get started!

    When you hit “submit,” I’ll send you an email to confirm I have your contact information. Let’s get started today!

    You Don’t Have To Give An Arm To Get A Lower Rate

    As mortgage rates rise, more homeowners are considering adjustable-rate mortgages (ARMs). Talk to your mortgage professional about the pros and cons for YOUR specific situation!

    Rising interest rates compounded with increasing home prices are causing affordability issues for many buyers. To keep payments low, you won’t have to give an arm, but more buyers are considering getting an ARM, adjustable-rate mortgages.

    Mortgage rates are near their highest point since 2009. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months,” said Sam Khater, Freddie Mac’s Chief Economist.

    A $400,000 home with a 10% down payment and a 30-year term has the choice of a 5.27% fixed rate or 3.96% for a 5/1 adjustable-rate mortgage. The principal and interest payment will be $1,992.40 for the fixed rate and $1,710.40 for the adjustable rate saving the buyer $281.99 per month for five years.
    There is an additional saving for the buyer choosing the adjustable-rate mortgage because the unpaid balance at the end of the five-year first period is $6,429 less than the fixed rate. The total savings to the buyer on the adjustable rate during the first period is $23,348 or $389.13 per month for sixty months.

    At the end of the first period, the rate on the mortgage can adjust according to the then, current index plus the margin subject to the caps as specified in the note. These safeguards remove control from the lender or servicer from arbitrarily raising the rate.
    The caps restrict the payments from going up more than a certain amount at each period or overall, for the life of the mortgage. A common cap might be that it cannot adjust more than 2%, up or down, at any given adjustment period or 6% above or below the initial note rate.

    Adjustable-rate mortgages must adjust downward if the index indicates a reduction at the anniversary of the adjustment period. The overall trend has been lower rates for the past thirty years until recently.
    Using an Adjustable Rate Comparison tool, you can project a breakeven point to determine at what point the ARM would be more expensive than the fixed rate, assuming a worst case situation where the rates would increase the maximum at each period.

    In the case of the previous example, the breakeven would occur at 7 years and 6 months. This means that if the buyer were to sell the home prior to that projection, the ARM would provide the cheapest cost of funds to purchase the home. On the other hand, if the buyer knew they would stay longer than that, it might be a safer option to go with the fixed rate.
    It is good to be aware of available options when financing a home. Analyzing using the best information available, can help you make an informed decision. Make your own comparison using our ARM Comparison. Current interest rates can be found on Freddie Mac.

    McKee Smith, REALTOR®, has been helping people like you sell and buy homes in the DFW area for many years. He is very knowledgeable about the housing market in Dallas and Fort Worth. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified. Remember – McKee has the keys to selling your home!

    Skills Market

    The skilled and experienced negotiator understands that every transaction is different because of dealing with individuals, their families, their needs, and their emotions. 

    In today’s ultra-competitive real estate market where there is only 1.7 months supply of inventory compared to 6 months in a balanced market, and the average home is getting 4.8 offers per sale, it is more important than ever to have the right person “champion” your cause.

    In the Middle Ages, it became customary for a person of nobility to appoint a “champion” to fight for them in their stead.  Trial by combat ended in the 15th to 16th centuries but the practice of “fighting” or speaking on one’s behalf continues even to this day.

    Lawyers will take up the cause of their clients to win justice for them.  Professional athletes are recruited for their abilities to help their team become victorious.  Craftsmen of every type imaginable are in high demand because of their finished products.

    Sellers’ and buyers’ objectives are different and, in many cases opposing in nature.  Sellers, rightfully so, believe they should get the most for their home while minimizing expenses and avoiding any issues that could cause delays.  Buyers want to be treated fairly; have an opportunity to buy the home of their choice and enjoy the protections of normal contingencies for things like mortgage approval and inspections.

    In most situations, there are two real estate agents involved in a single sale. While there could be legal agency distinctions, it is commonly felt that the agent on their side of the transaction is “championing” their cause.  It is natural to want your champion to be the most capable person available.

    There are skills that agents need in today’s market not the least of which is negotiations.  Regardless of which side of the fence you’re on, your agent needs to be skilled in negotiating on your behalf.  Every part of the contract is a negotiation starting with the price, then, whether it is cash or subject to a mortgage.  What’s a reasonable amount of earnest money?  Can it be “as is” and still allow the buyer inspections so they’ll be fully aware of what they’re buying?

    The buyer wants to negotiate the best terms possible with the seller and they are depending on their agent to work for them to get them.  The home inspector has been hired by the buyer to determine the condition of the home and will most likely, ask the seller to make any necessary repairs.

    The lender hires an appraiser to determine the value of the home so that the loan will be secured by the property.  Recent sales are used as comparables, but they trail the market which becomes a challenge in rapidly appreciating markets, especially, when there are multiple offers. 

    And since multiple offers are the norm currently, what is the best way to handle them based on the seller’s or buyer’s perspective.  There could be legal and ethical procedures that must be followed but an agent’s experience may also contribute to a favorable outcome.

    The skilled and experienced negotiator understands that every transaction is different because of dealing with individuals, their families, their needs, and their emotions.  The role of the third-party negotiator can be invaluable to the success of the transaction based on not only their experience but the juxtaposition to the principals and their objectivity of trying to reach a compromise.

    McKee Smith, REALTOR®, has years of experience in the DFW area housing market. He knows the many unique features of Dallas and Fort Worth area home sales. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!

    Existing Homeowners May Be Facing Higher Payments

    The average increase in home value of 20% is causing a large increase in property tax assessments.

    As a current homeowner, you may be basking in the consolation that you bought before the market got crazy with higher prices and interest rates. However, it doesn’t mean that you may not be facing higher mortgage payments for next year.

    Most homeowners pay their taxes and insurance into an escrow account with their mortgage payment.  The lender monitors the account to be sure there are enough funds available when the taxes and insurance are due.  If there is a shortage, it could cause your payment to increase.

    In 2021, the national average increase in home prices was just under 20% but may have been considerably higher in some local markets.  The increased value of homes doesn’t just affect buyers, in can affect the assessed value of properties across the board resulting in their property taxes going up.

    Various taxing authorities, like state, city, school, and other special districts, can establish the rate they charge and exemptions that apply.  In most situations, there is a state assessment procedure for establishing the value subject to tax.

    When the assessment is published, there is usually an opportunity for the owner to challenge the value.  The owner can submit evidence to justify lowering the assessment like comparable sales that indicate a lower value, mistakes in the size of the improvements or lot size, or possibly, deteriorated condition of the property.

    There are companies that will represent sellers in the effort to lower the assessment.  Typically, they may charge a flat fee and a percent of the property taxes saved by lowering the assessment.  This particular year, some assessed values have gone up as much as 35-40% and it may not seem fair, but it really does accurately reflect market value.

    Start investigating your situation as soon as you are notified of this year’s assessment.  In most cases, the owner can represent themselves in the matter, but they will need to accumulate accurate, comparable sales, not use automated value models, found online.

    I can provide you with a list of comparable sales, but with the increase in average sale prices, there might not be as much of a difference as in past years.

    McKee Smith, REALTOR®, is an experienced real estate agent that specializes in the Dallas and Fort Worth market. He understands the intricacies of the DFW housing market. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!

    Instead of a vision, show them the house!

    In some cases, buyers simply can’t imagine what the home would look like after the renovations are made.

    Sellers try to rationalize not making needed updating and repairs to their homes before marketing them by saying they are going to let the buyers make their own personal choices.  It is a convenient story to justify not going to the effort for the necessary market preparation to justify achieving the highest possible sales price.

    An agent told a story of a home that was structurally sound being on the market, but it needed significant cosmetic work, like paint, floorcovering, updated fixtures, and lots of yard work.  The house was vacant with the owner having moved out of town. 

    The agent explained to a prospective buyer what he thought it would take to bring the home up-to-date and what it would be worth.  The buyer was from out of town and was going to be teaching at the university the next semester.  He returned home without buying and came back to look again two months later.

    As they were looking at homes with the same agent, the question came up about the previously viewed home that needed work.  The agent told him that she had bought it and did all the things that she had suggested.  The buyer asked if he could look at it.  On seeing the property, now, in its pristine condition, the buyer asked the agent if she would sell the home to him at a profit.

    The agent told him that it wasn’t for sale but followed up with the buyer with a question of her own.  “I told you that you could buy it for below market and gave you an estimate of what it would take to update it which would have you in the home below market value and with all the colors and choices of your own.  Why didn’t you buy it then?

    The buyer admitted that it looked like a lot of work and that he just didn’t feel up to the challenge.  The main thing was that he just saw a lot of work and couldn’t really see the finished product.

    This story is not novel; it happens frequently.  Buyers are not experienced enough to recognize what needs to be done, how much it would cost and how long it would take.  In many cases, they don’t have connections with the different service providers.  In some cases, they simply can’t imagine what the home would look like after the renovations are made.

    There are some buyers who scout out opportunities for do-it-yourself experiences where they can earn sweat equity by buying below market and making the repairs to add value to the home.  There are many more buyers who don’t know how and/or may not want the hassle and are willing to pay a higher price and be able to “move-in” to their new home.

    The highest prices being paid for homes are the ones in the best condition with the best locations.

    The highly popular TV series Fixer Upper now, on the new Magnolia Network, uses this situation for the premise of each show.  People want to buy a home in great condition but can’t find what they want.  Chip and Joanna find a good home in a good neighborhood for them and sell the vision of what it could be.  The unique aspect of the show is that they act as agents, designers, and contractors to meet the buyers’ budget.

    In the case of Fixer Upper, the buyer is the beneficiary of the increased equity for having taken the risk to make the repairs.  For the seller to be the beneficiary, they need to do the updating and repairs before marketing the home.

    Ask your agent if they can provide suggestions of what items would most benefit from remodeling and if they have service providers that they can recommend.  The proceeds from the sale of your home belong to you and to maximize them, it needs to sell for the highest possible price.  

    McKee Smith, REALTOR®, has been helping people like you sell and buy homes in the DFW area for many years. He is very knowledgeable about the housing market in Dallas and Fort Worth. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!

    Equity Gives Homeowners Options

    You can estimate what your equity would be in the old home versus selling it and buying a larger home over the same period.

    Americans have seen the equity in their homes increase by 29.3% year over year in the fourth quarter of 2021 according to the CoreLogic Homeowner Equity Insights.  The average home equity gained $55,000 during the same period.

    CoreLogic’s Home Price Index reported a 19.1% increase in appreciation for the previous twelve months ending in January 2022.  This increase in value is fueling the increased equity that homeowners are experiencing.

    Some homeowners are doing cash-out refinancing and using the funds for a variety of purposes like home improvements, investing, saving for retirement, college or rainy-day funds.

    Other homeowners are seeing the increased value of their homes as an opportunity to move up to a home that meets more of their current lifestyle.  In some cases, adult children have moved back home, and in others, working remotely has made their current home not as ideal as it once was.

    Homeowners now realize that their home has been quite the investment and are willing to re-invest in a larger home that meets their current needs.  With their increased equities and mortgage rates still under 4.00%, they can get into a home for a relatively small increase and the higher value home will continue to increase.

    One way to justify moving to a larger home is to estimate what your equity would be in the old home in a specified number of years from now compared to selling it and buying a larger home to see what the equity would grow to in the same period.

    A $400,000 home appreciating at 4% annually would be worth $526,000 in seven years compared to a $600,000 home appreciating at the same rate that would be worth $789,000 in the same time frame.  This doesn’t tell the whole story because the mortgage amounts are different.

    The comparison in the table below doesn’t show the higher payment on the larger home but can be explained by the benefits of enjoyment and practicality of having a larger home to live in during the comparison period.

    Hold or Sell & Buy Analysis

    Hold Current Home
    Current Value $      400,000
    Value in 7 years at 4% appreciation $      526,373
    Unpaid Balance … Original mortgage $225,000 @ 3.5% for 30 years $      191,350
    Wealth Position $      377,998
    Sell Current Home & Buy Another Home
    Equity from Sale after 7.5% sales costs $      178,650
    Purchase Price of New Home $      600,000
    Value of New Home in 7 years $      789,559
    Unpaid Balance – 75%Mortgage @ 4% for 30-years EOY 7 $      387,268
    Wealth Position $      424,863
    Difference in Positions $        46,864
    Percentage Increase12.40%

    To make your own analysis, use the Hold or Sell & Buy financial app on my website. Contact me to find out what your home is worth or to help you with any questions you may have.

    McKee Smith, REALTOR®, has been selling and buying homes in Dallas and Fort Worth for many years. He knows and understands the intricacies of the DFW housing market. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!

    The Dynamics of Home Equity

    Having equity in a home gives the homeowner a lot of flexibility!

    Appreciation and amortization are key factors in building equity for homeowners with mortgages.  As the home goes up in value due to appreciation and the unpaid balance goes down due to amortization, the equity increases.

    Appreciation is the increase in value of a home and is usually measured year over year.  In recent years, appreciation has been robust (19% nationwide in 2021) due to high demand and low inventory.  Many times, the news will quote annual appreciation rates from a national or regional level.

    Occasionally, you may see a chart that tracks the annual appreciation over a period, but it is more interesting than it is practical.  It can be used to determine an average rate over a longer period that you can use to project future growth.

    The reality is that supply and demand determine appreciation along with location and condition.  To reflect more accurately what your individual home has appreciated, you’ll need to find local numbers which your real estate professional can provide.

    The amortization of a loan is consistent with regular monthly payments based on the term of the mortgage.  Homeowners frequently receive a monthly statement, either through the mail or online, from their lender declaring the current unpaid balance.

    If a homeowner makes additional principal contributions toward the loan, the unpaid balance will accelerate the normal amortization schedule.  Additional principal payments on fixed-rate mortgages shorten the term of the mortgage.  Additional principal payments on adjustable-rate mortgages will lower the payment on the next anniversary date.

    Equity in a home is the difference between the value of the property and what is owed on in.  If there is no mortgage on a property, the equity and value of the home are the same.

    To illustrate how equity is influenced by appreciation and amortization, let’s look at an example of a $400,000 purchased today that appreciates at 3% a year using a 90% mortgage at 4% for 30 years.  The $40,000 would grow in seven years to $182,135 in equity with $91,950 coming from appreciation and $50,186 from amortization.

    If the appreciation in the same hypothetical example is increased to 5% annually, the equity would be $253,026 with $162,840 coming from appreciation and the same $50,186 from amortization.  The same loan amount, rate and term will result in the same unpaid balance as the example with lower appreciation.

    With the considerable appreciation experienced in recent years, the values are going up fast and benefit the people who currently own a home while making it more expensive for would-be buyers.  Another factor facing buyers is rising interest rates.

    It is important to get the facts about the market and your individual situation to determine what alternatives you have to purchase a home in the near future.  Your agent can provide this objectivity and recommend a trusted mortgage professional to be pre-approved.

    For more information, download my Buyers Guide.

    McKee Smith, REALTOR®, has years of experience in the DFW area housing market. He knows the many unique features of Dallas and Fort Worth area home sales. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!

    Buyer’s Closing Costs

    Even though it may be possible to have a seller the buyer’s closing costs, ask your real estate professional about the practicality of it.

    Ideally, each party will pay their own closing costs associated with the purchase and the sale of a home, but they can be negotiable based on lender requirements and market conditions.

    The fees are usually paid at the settlement and will be itemized on the closing statement.  Buyers should be aware of them before contracting for a home.  If a mortgage is involved, the lender will want to verify that the borrower has ample funds available at closing to pay for them.

    Buyer’s closing costs can range from two to five percent of the sales price.  The real estate agents should be able to give you an estimate of what a buyer can expect.  The most accurate estimate will come from the lender at the time the loan application is made. They may or may not include other fees that will be charged to buyers by the title or escrow company.

    Buyers are required to be provided a standard Closing Disclosure form at least three business days before the loan closing date.  This document will include the loan terms, estimated monthly payments, loan fees and other charges.  This can be compared to the loan estimate provided by the lender when the application was made.

    Fees connected to a mortgage

    Loan origination fee … This is the lender’s fee for processing the mortgage application.  It can vary in amount but typically, it can be one percent of the mortgage amount.  It may be possible to negotiate this fee into the rate of the mortgage.

    VA funding fee … This is a fee charged to the veteran for closing the loan.  It can be paid in cash or rolled into a mortgage.  The amount is based on the status of the veteran, their down payment and whether they have had a VA loan before.

    Appraisal … This is a fee paid for a licensed appraiser to determine the value of the property.  It validates that the mortgage will not exceed the purchase price and that the buyer has enough down payment based on the type of mortgage applied for.

    Attorney fee … This fee is charged to ensure that the legal documents are drawn properly so the lender will have an enforceable mortgage.  It is not for legal representation of the buyer.

    Discount points … A point is one percent of the mortgage.  These fees are considered prepaid interest and can be used to adjust the interest rate on the mortgage.

    Lender’s title insurance … This coverage insures that the lender has an enforceable lien from title claims on the property.  This policy is usually issued in connection with an owner’s title policy and is priced separately.

    Mortgage insurance … Most loans made in excess of 80% of the loan to value require mortgage insurance to protect the lender from a loss if the property must be foreclosed on.  There is no mortgage insurance requirement on VA loans. FHA mortgage insurance premium has two parts.  There is an up-front charge of 1.75% of the loan amount and then, a monthly amount which is added to the payment.  Conventional loans usually collect the first month’s premium in advance and subsequent amounts are rolled into the mortgage payment.

    Recording fees … These are fees that are for filing the legal documents with the municipal or county recorders.  The documents would include the mortgage and the deed.

    Survey fees … This fee is necessary, based on the requirements of the lender, to verify property lines, shared fences and driveways and to identify any other encumbrances.

    Underwriting fee … This is a separate fee that covers the research and determination that the entire loan package meets the lender’s requirements.

    Fees required by mortgage for escrow account

    Property taxes … Lenders can require two to three months’ taxes to be held in escrow so that there will be enough to pay them in full 60 to 90 days before they are due.

    Property insurance … Insurance is paid in advance and the annual premium will be due at closing.  The lender further requires one additional month’s amount so that one month prior to the anniversary date, the premium can be paid for the renewal.

    Flood insurance … The lender may require flood insurance on the property based on their assessment of the location in a flood zone or proximity to a flood zone.

    Fees connected to the purchase of a home

    Settlement fee … This is the buyer’s portion of the fee paid to the title or escrow company, or attorney who handles the closing of the sale.

    HOA Fee … Home Owner Association fees are usually paid in advance by the owner.  They are prorated at closing for the amount paid that the seller does not benefit from.

    Owner’s Title insurance … This coverage insures that the buyer, the new owner, received clear and marketable title from the seller.  It will protect the new owners’ interests should they be challenged.  Even though it may not be required, it is recommended.

    Pest inspection … A pest inspection by a licensed exterminator can be required by a buyer to determine if there are active termites or termite damage, dry rot or another pest infestation.

    Property inspection … A home inspection conducted by a professional can be required to determine the structural integrity of the property as well as all the systems in the home.  It can include but not be limited to plumbing, electrical, roof, heating and air conditioning, appliances and other things.

    Title search … Sometimes, title companies waive this fee when an owner’s title policy is issued.  It can be customary that a separate fee is charged in addition to the premium for the title insurance.

    Transfer taxes … When government taxes are required, these fees must be collected.

    The Consumer Financial Protection Bureau is a U.S. government agency that makes sure banks, lenders and other financial companies treat the public fairly.  You can download a Closing Disclosure Explainer from their website.

    McKee Smith, REALTOR®, has been selling and buying homes in Dallas and Fort Worth for many years. He knows and understands the intricacies of the DFW housing market. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!

    June is National Homeownership Month!

    June is National Homeowership Month

    Get the facts on what price home you qualify for and what mortgage interest rate is available.

    June is National Homeownership month encouraging people to enjoy the social, security and financial benefits.  According to the Joint Center for Housing Studies at Harvard University, the following reasons were given for Americans buying a home.

    • Good place to raise children and provide them with a good education
    • Physical structure where you and your family feel safe
    • More space for your family
    • Control over what you do with your living space, like renovations and updates
    • Good way to build up wealth that can be passed along to my family

    There are significant financial benefits to homeownership that include:

    • The net worth of homeowners is over 40 times more than renters
    • Each payment on an amortized loan reduces the principal and builds equity
    • Appreciation increases the value of the home and the owner’s equity
    • Some homeowners will benefit by taking itemized deductions including interest and property taxes
    • Exclusion of capital gain … up to $250,000 for single taxpayers and $500,000 for married filing jointly
    • Stepped-up basis for heirs which results in reducing or eliminating gain

    For more information, download the Homeowners Tax Guide and the Buyers Guide.

    McKee Smith, REALTOR®, is an experienced real estate agent that specializes in the Dallas and Fort Worth market. He understands the intricacies of the DFW housing market. He works out of his home in Coppell, Texas. He is a Senior Real Estate Specialist® (SRES®) and new home construction buyer representation certified.  Remember – McKee has the keys to selling your home!