Interest Rates / Mortgage Calculator

Updated daily through Utah Mortgage Loan Corporation:  CURRENT RATES

To Purchase Get Pre-Qualified

Most sellers will NOT accept an offer to purchase without a pre-approval letter. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. Most importantly, this serves as a good indication to potential sellers of your general creditworthiness.

The "pre-qualification" process is relatively easy, is free and without obligation to the lender. When we have located your new home and are ready to submit an offer to purchase, I will include your "pre-qual" letter with the offer. This validates your strength as a buyer. At you convenience I suggest you contact my valued partner, The Marchant Team, for a comprehensive review of your financing options and to become pre-qualified.

The Marchant Team



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CAPITAL GAINS

When you sell a home the capital gain is what you paid for the home plus any improvements you have made less the proceeds from the sale (net after sales commissions and closing costs). If you have a mortgage it is paid off at closing and your proceeds are reduced by the balance remaining on the mortgage. You will only owe federal capital gain tax if your proceeds (gain) is above $250,000 for individuals or $500,000 for married couples who file jointly. To qualify for this tax break you must have lived in the home for two of the past five years.

Your initial purchase price plus your closing expenses, including commissions, loan fees, closing costs, etc. establish a beginning "cost basis." Over the years you can add to that basis the cost of improvements that prolong the life of the home or add new permanent features. The Internal Revenue Service Publication 523 "Selling Your Home" identifies allowable adjustments to the basis.

1031 EXCHANGE

When selling a business or investment properties you may defer capital gains taxation by structuring a real estate transaction under Internal Revenue Code 1031 or "like-kind exchange." Whenever it is swapped in another 1031 Exchange gains continued to be deferred. Under some conditions, depreciation may be subject to recapture and taxed as ordinary income.

Exchanged property must be similar in character, nature or class to qualify as like-kind. IRS rules for similarity are generous, allowing for exchange with most classes of real property, such as commercial property for land. Personal property and real property are not like-kind. You cannot exchange property located within the United States with property located outside the country. Other property not eligible for 1031 Exchange include stocks, bonds, securities, debts, certificates of trust and partnership interests. Like-kind properties of unequal value may involve taxable gain.

The IRS has specific timelines for the completion of 1031 Exchanges. The exchange must be part of an integrated transaction usually managed by an intermediary. The taxpayer has 45 days after selling the relinquished property to identify the replacement property and 180 days to close on the replacement property. 


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