As part of the fiscal cliff deal, Congress extended the cancellation of mortgage debt relief provision for 1 year, through the end of 2013.
It seems there is little focus on the importance of this law, it is crucial to foreclosure mitigation efforts such as principal forgiveness and short sales.
Normally, when a lender forgives all or a portion of a borrower’s debt, U.S. law decrees that the forgiven amount is considered taxable income to the borrower. This “forgiveness” is also known as Cancellation of Debt (COD) Income. COD must be included in a taxpayer’s gross income. The Mortgage Forgiveness Debt Relief Act allows homeowners who received principal reductions or other forms of debt forgiveness not to pay taxes on the amount forgiven.
Consult your tax adviser to determine whether the Mortgage Forgiveness Debt Relief Act is relevant to your particular situation.
St. Louis MORTGAGE INTEREST RATES for January 23, 2013:
- Conventional 30-Year Fixed 3.500%/ 3.777% APR
- Conventional 15-Year Fixed 3.000% 3.097% APR
- Conventional 7/1 ARM 2.625%/ 3.332% APR
- FHA/VA 30 Year Fixed 3.25%/4.160% APR
- Jumbo 5/1 ARM 2.625%/ 2.426% APR
- Jumbo 15 yr Fixed 3.000%/ 3.094% APR
- Jumbo 30 yr Fixed 4.625%/ 4.719% APR
*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.
Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com
For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
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