As we near the end of the year we are again reminded of the benefits of living in Colorado. Beyond our incredible weather and vibrant communities, our local housing market has stayed relatively strong in the midst of a tough national economy.
The big news truly is today's low rate environment. Homeowners have been enjoying an unprecedented period of low mortgage rates, with an all-time low a few weeks ago. I never imagined locking 30 year fixed rate loans below 4.0%, but that has been a reality lately for well-qualified clients. It is not too late, however the best rates pass quickly, sometimes in a matter of hours. Those who are prepared to lock have saved a lot of money.
Many of my clients have recently been exploring investment property purchases to grow their wealth and diversify their portfolio. Thanks to the low rates and other factors, today is an ideal time to consider this investment option. Contact me if you'd like to discuss the opportunities available to your clients in this market in more depth.
Thank you again for your referrals and support of my business! It is always my goal to provide your clients with the highest level of service, coupled with great rates and a broad offering of loan products.
Monday, October 24, 2011
Make the Most of Your Flex Account in 2012
Will the maximum amount that I can contribute to my employer's medical flexible spending account shrink next year? I recall hearing that the contribution limits will change.
Actually, the rules won't change until 2013, when the maximum amount employees can stash in a medical FSA will be capped at $2,500 per year. Currently the maximum limit varies by plan, but many employers allow employees to set aside $4,000 or more in these pretax accounts for medical expenses. You can sign up for your 2012 contributions during open-enrollment season this fall.
In light of the impending change, however, you can make the most of your FSA in 2012. If you've been thinking of having an elective medical procedure done that's not fully covered by insurance – such as laser eye surgery for you or orthodontia for your kids – you might want to schedule it before the FSA limit changes, so you'll have access to more tax-free money.
And, if you plan carefully, you may have an even bigger stash of tax-free money to use for out-of-pocket medical expenses during the first 2½ months of 2012 or 2013. If your employer extends the deadline for using FSA funds to March 15 of the following year, rather than December 31, you can combine any funds remaining from the previous year with the entire amount you earmark for the current year – even though the full amount has not yet been deducted from your paycheck. If, for example, you have $1,000 left over from 2011 and you sign up to contribute $4,000 to your FSA for 2012, you may be able to use $5,000 in tax-free money to pay for out-of-pocket medical expenses from January 1 to March 15, 2012.
Actually, the rules won't change until 2013, when the maximum amount employees can stash in a medical FSA will be capped at $2,500 per year. Currently the maximum limit varies by plan, but many employers allow employees to set aside $4,000 or more in these pretax accounts for medical expenses. You can sign up for your 2012 contributions during open-enrollment season this fall.
In light of the impending change, however, you can make the most of your FSA in 2012. If you've been thinking of having an elective medical procedure done that's not fully covered by insurance – such as laser eye surgery for you or orthodontia for your kids – you might want to schedule it before the FSA limit changes, so you'll have access to more tax-free money.
And, if you plan carefully, you may have an even bigger stash of tax-free money to use for out-of-pocket medical expenses during the first 2½ months of 2012 or 2013. If your employer extends the deadline for using FSA funds to March 15 of the following year, rather than December 31, you can combine any funds remaining from the previous year with the entire amount you earmark for the current year – even though the full amount has not yet been deducted from your paycheck. If, for example, you have $1,000 left over from 2011 and you sign up to contribute $4,000 to your FSA for 2012, you may be able to use $5,000 in tax-free money to pay for out-of-pocket medical expenses from January 1 to March 15, 2012.
Weekly Info 10/22/2011
Mortgage interest rates improved slightly on the week on mixed economic data. Economic data better than expected included the October NAHB Housing Market Index, September Housing Starts, weekly jobless claims, and the October Philadelphia Fed Business Index. Economic data weaker than expected included the October New York Empire State Manufacturing Index, September Building Permits, and September Existing Home Sales. Inflation data was generally in line with expectations. However, the overall Producer Price Index (PPI), a measure of wholesale prices, was up 0.8% on expectations that it would be up 0.2%. Uncertainty persists surrounding the European sovereign debt crisis. German officials are saying that a deal will be resolved by next Wednesday. Yesterday the Greece Parliament voted to cut spending, appearing to meet the demands of the ECB, IMF, and EU for additional aid.
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