Home Ownership - 360 Degrees of Financial Literacy

Deducting Costs Associated with Refinancing a Mortgage Loan

Thu, 21 Mar 2013 11:55:57 EDT

Now more than ever, homeowners are taking advantage of historically low interest rates and refinancing their mortgage loans. Did you pay points to your lender when you refinanced your loan? If so, you may be able to deduct them.

With mortgage rates so low, does it make sense to refinance?

Tue, 07 Feb 2012 18:37:02 EST

With mortgage rates so low, does it make sense to refinance?

Read the Answer »

Understanding Your Homeowners Policy

Fri, 22 Jul 2011 02:35:51 EDT

Your homeowners insurance policy may be full of jargon, exclusions, and conditions, but you'll be wise to read it thoroughly. Your policy protects you from some home-related property and liability risks, and covers your home and personal property if damaged, destroyed, or stolen. It's made up of preprinted pages, with the Declarations Page stating your unique information. Section I covers property provisions, and Section II defines your liability coverage. Be sure you understand the amount that the insurance company will pay if you have a loss.

Tax Tips: Homeowners Insurance

Fri, 22 Jul 2011 01:47:25 EDT

Homeowners insurance can affect your income tax deductions. You'll be entitled to claim a casualty or theft loss deduction on your federal tax return if you aren't fully reimbursed for a covered loss. Don't forget that your policy has a deductible that you'll have to pay before the insurer reimburses you for any loss. With a home-based business, you may qualify to deduct your insurance premiums. Think about buying additional insurance, though.

Shopping for Homeowners Insurance

Fri, 22 Jul 2011 01:44:55 EDT

Don't go shopping for homeowners insurance until you assess your coverage needs. Decide how much coverage you need for your dwelling, for your personal property, and for protection against liability claims. If you already have a policy, pull it out, review it, make sure it meets your current needs, and even compare it to what other companies will offer you in similar coverage, price, and service. Always shop for the best value for your money, balancing cost against the quality of coverage and service. A qualified agent or broker can shop the market for you, saving you time.

Refinancing Your Mortgage

Fri, 22 Jul 2011 01:44:39 EDT

There are generally two instances when it's wise to refinance your mortgage. Refinancing can be a good idea if you have an adjustable rate mortgage and interest rates are rising, or if you can save money by getting a lower interest rate. But there are costs to consider, such as points, closing costs, and private mortgage insurance. You'll need to determine how long it will take for your refinancing to pay for itself. If you don't recoup the cost of refinancing during the time you own the home, you aren't really saving money.

Liability Insurance under Your Homeowners Policy

Fri, 22 Jul 2011 01:43:25 EDT

The liability section of your homeowners policy covers bodily injury or property damage suffered by others in connection with your property. Read your policy carefully to find out what's covered. Your policy also has an exclusions section that spells out what's not covered, as well as the conditions you'll have to meet before coverage begins. If you want to expand your liability coverage, consider buying a personal umbrella liability policy.

Insuring Your Vacation Home

Fri, 22 Jul 2011 01:43:02 EDT

You need insurance to protect your vacation home, but it shouldn't overlap your existing homeowners insurance coverage. A dwelling fire policy may fill your need: It's designed for a second home, providing coverage for the dwelling itself and your personal property. A dwelling fire policy may be less expensive than your primary residence's homeowners policy since it doesn't usually include liability insurance. You may also save on the premiums by insuring with the same company that insures your primary residence.

Insuring Your Home During Remodeling

Fri, 22 Jul 2011 01:43:01 EDT

Whether you're adding a new room or making a simple home improvement, be sure that your homeowners insurance policy is up-to-date and will cover the planned work. It's best to contact your agent before any work begins, in case you must increase your coverage. And remember to include any new personal property you add to the new room--it increases the value of your property. You'll want to check that your contractors have adequate workers' compensation coverage, and don't forget the subcontractors, who must be covered separately.

Insuring a New Home During Construction

Fri, 22 Jul 2011 01:43:00 EDT

While your dream house is being built, insure the structure and its contents against liability or damage from fire and adverse weather. A homeowners policy may offer this protection, but cover your old home until the new home is complete. Temporary policies are also available, or a dwelling and fire policy may work for you while the house is being constructed. In comprehensive form, dwelling and fire coverage provides liability, property, and theft coverage. Also, ask for a copy of each contractor's workers' compensation insurance. Re-evaluate your coverage when the new home is finished.