In December 2015, there were changes made to the real estate transfer tax exemptions in Michigan. If you did not qualify previously, but now qualify for an exemption under the new rules, you may go back up to four years and request a refund on the transfer taxes you paid.
So what changed exactly? On 12/16/15, governor Snyder passed a bill that simplified and clarified exemption "U". Exemption "U" applies when the SEV (State Equalized Value) at the time of the sale is less than or equal to the original SEV when purchased. The idea of this exemption is that if you sell your house at a loss, you do not pay transfer tax. The only other requirement is that the home was your primary residence.
If one of your future goals is to purchase a home, it’s never too early to start preparing yourself financially. One of the major factors that goes into getting approved for a home mortgage is your credit score and credit history. Your credit worthiness will determine what loan terms you qualify for. The following are steps you can take now to prepare your credit for buying a home in the future.
1) Establish Credit- In order to have credit, you need to start somewhere. For me, that was a credit card with a very low balance as soon as I turned 18. As you use it and make payments, you will be establishing credit.
Sometimes buyers are anxious to look for a home and want to get started right away. However, the first step in the home buying process is getting pre-approved for a loan. Before issuing a pre-approval letter, a lender will check a person's credit, income, debt, and assess their overall financial position. From there, the lender can state that you qualify for a loan up to a certain amount and issue a pre-approval letter. A pre-approval letter is a necessity for the following reasons:
Your annual property tax is based on your taxable value. First, figure out the market value of your home. Zillow.com and trulia.com are great resources, or you can contact me and I can send you info on recently sold properties in your neighborhood. Take the approximate market value and divide that by half. If this number is less than your taxable value, you may be paying too much for property taxes! The people who may benefit the most from a tax appeal are people who bought their homes at the peak of the market, between 2000 and 2005. For the exact appeal process, check your local city or township website.
See a step-by-step guide on how to appeal your property taxes at https://www.houselogic.com/finances-taxes/taxes/property-tax-appeal/
Fixed Rate- A loan with a fixed rate simply means the interest rate does not change over the life of the loan. Most people prefer this loan type because the payment amount will not change much, making this loan the most predictable.
Adjustable Rate Mortgage (ARM)- This type of loan usually start with a really low rate. After a certain amount of time, the interest rates can change with market conditions. This type of loan may be an advantage to someone who will not live at a property for more than a couple years. However, the unpredictability of this loan is a big downside.
Great info on everything real estate.