Important Information Regarding 2014 STAR Exemption for Home-owners

Important Information Regarding 2014 STAR Exemption for Home-owners

By: Christina DeFalco

Date: 8/22/2013

To keep STAR tax break, you'll need to reapply by Dec. 31

In coming weeks, homeowners will receive a letter instructing them to reapply for the STAR program online or by phone by Dec. 31. People will need to verify their salaries, Social Security numbers and primary residence.

The initiative, approved as part of the state budget in March, will seek to stop some property owners from claiming the tax breaks on multiple homes.

 

The new legislation requires all homeowners receiving a Basic STAR exemption to register with the New York State Tax Department in order to receive the exemption in 2014 and subsequent years.

• Homeowners will not have to register in order to receive their 2013 STAR exemptions.
• Homeowners will not have to re-register every year. Based on the information provided in the  registration process, the Tax Department will monitor homeowners' eligibility in future years.

 

How to register

You can register for the STAR exemption online. You'll need to:

• provide a STAR code (we're mailing codes to all Basic STAR recipients; or you can use the STAR code lookup)
• provide the names and social security numbers for all owners of the property and spouses
• confirm that the property is the primary residence of one of its owners (married couples with multiple residences may only claim one STAR exemption)
• confirm that the combined income of the owners and their spouses who reside at the property does not exceed $500,000
• confirm that no resident owner received a residency-based tax benefit from another state

 

You can also register by calling (518) 457-2036

• Monday - Friday:  8:30 am - 8:00 pm
• Saturday:  9:00 am - 1:00 pm

 

Registration period

Registration started on August 19, 2013 and will continue through December 31, 2013.

 

Senior citizens

Senior citizens receiving the Enhanced STAR exemption are not affected by the new registration requirement. Seniors must, however, continue to:

• apply annually, or
• participate in the Income Verification Program

 

For more information contact (518) 457-2036 or visit New York State Department of Taxation and Finance.

This Month in Real Estate - August 2013 Market Update

Keller Williams Realty Landmark | 32-55 Francis Lewis Blvd. | Bayside | NY | 11358

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Down-Payment Got You Down?

For many Americans, "coming up" with a down-payment for their first home purchase can be a major roadblock -- and quite often the reason for renting, rather than owning, a home. A "down-payment" is the difference between the home's purchase price and its mortgage amount. This percentage of the sale price must be paid up-front and can vary by lender, location, and loan program. A higher down-payment generally translates into lower loan interest rate requirements.
Typically, a down-payment comes from personal cash savings, but it can also be a gift that is not to be repaid, or a borrowed amount secured by assets.

While conventional loan down-payments may be close to 20% of the sale price, government loans typically have lower down payment requirements. This allows potential homebuyers who normally cannot meet down-payment requirements an opportunity to qualify for a mortgage. Keep in mind that down-payments that are less than 20% of the sale price typically require mortgage insurance payments.

Down-Payment Assistance Programs

Fortunately, there are programs and organizations that can help you with your down-payment requirements:

Federal Government Loan Programs - Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) may offer assistance in paying your up-front cash requirements. These programs can significantly reduce your down-payment requirements. You may also want to contact your local Department of Housing and Urban Development (HUD) Community Builders to find out what local down-payment assistance programs are available.

State Housing Authorities - State agencies may offer down-payment assistance programs in your state.

Private Mortgage Insurance - Private insurance companies that offer you the opportunity to finance
some of your down-payment requirements. This allows lenders to accept lower down-payments than
they would normally allow.

10 Things You Should Know Before Buying a Home

1. Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions, and mortgage bankers make home loans; mortgage brokers process loans through a variety of lenders. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.
2. If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit.
3. You may need a down-payment. Down-payment requirements vary depending on the type of loan. Many down-payment assistance programs exist. These programs may loan or grant you the funds necessary for the down-payment. Consult with a lender about programs available in your area.
4. You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to: Escrow fees, title policy issuance fees, mortgage insurance fees, fire, flood, and homeowners insurance, county recorder fees, and; loan origination fees. Consult your lender for an actual estimate of these costs.
5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate, they constitute the yield on your loan for the lender.
6. Mortgage rates can be fixed or adjustable. Which one is right for you depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. 
7. There are two main types of loan categories. Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Government Loans. These include FHA fixed and adjustable rate mortgage loans, and VA fixed rate mortgage loans.
8. If you are a low-to-moderate-income homebuyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies. 
9. You may have to pay mortgage insurance. Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Mortgage insurance is always required on FHA mortgage loans. 
10. Many organizations offer home loan counseling to prospective homebuyers. They will cover
    home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down-payment, and other important pieces of information.

 

 

 

Copyright 2013 Keller Williams® Realty, Inc. If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed. Equal Opportunity Housing Provider. Each office is independently owned and operated.

 

Tax, Mortgage and Credit Card Fraud - Oh My!

by Cristina Callegari Kanellopoulos

According to a press release from the Queens district attorney's office, former Queens resident Rafael Vascones plead guilty to charges of tax, mortgage and credit card fraud. He was sentenced to six months in jail AND more than $400,000 in restitution and penalties.

Vascones, who is 54, was operating two businesses, Integrated Business Communications and NA Networking Group from Queens and was simultaneously maintaining false identities, forging documents, and evading taxes, among other crimes.

Queens District Attorney, Richard Brown, said that Vascones falsified documents in applying to refinance his property in Whitestone with Washington Mutual in order to receive cash payouts from the loan. After serving his jail time, he will serve five years probation.

Fire Safety and Prevention

by Cristina Callegari Kanellopoulos

Fire safety in your home is extremely important. Below find some common sense tips on how to prevent fires:

1. Keep all stove vents free of grease and be sure to clean them regularly.
2. Don't fill tanks of gas powered tools like, snow blowers or lawn mowers while the engine is running, and don't fill those gas tanks in your home or garage.
3. Store oily rags in closed metal containers so that they won't combust spontaneously, and be sure to dispose of them as hazardous waste as soon as possible.
4. Store flammable liquids in closed containers AWAY from sources of heat.
5. Never, ever leave anything unattended on the stove, and keep pot handles turned inward so they don't get accidentally knocked into.
6. Make sure that lightbulbs are not touching lampsades, and do not drape scarves or fabrics over lamps.
7. Store matches, and lighters away from a child's reach.
8. Always use a fire screen while using your fireplace.
9. Don't overload electrical circuits, and only use properly rated fuses.
10. Don't allow rubbish to pile up in corners of the basement or the garage.
11. Keep all appliances, large and small clean and free of debris and in good working order.

Common sense should prevail when it comes to fire safety. However, should there ever be a fire in your home, do not attempt to put it out. Grab your family and your cell phone and evacuate immediately. Call the fire department when safely outside.

Moving Tips

Moving Tips

by Cristina Callegari Kanellopoulos

Everybody hates moving, it does not matter if you have done it once or several times, it is never an easy task. Here is some tips you may find helpful:

1. Notify the post office of your new forwarding address.
2. Cancel subscriptions that would not or cannot be forwarded.
3. Change addresses on your bank profile and checks.
4. Arrange for utilities and telephone at your new location.
5. Plan for needs of children and pets during the move.
6. Plan for sufficient cash during the move.
7. If you are packing and moving yourself, make arrangements with local moving supply dealers and truck rental agencies. If not, make sure you have a quotation all set up in advance.
8. Start the weeding out process for what to keep and what to dump.
9. Pack one room at a time.
10. Keep the weight of your boxes reasonable.
11. Start packing and marking every box according to contents and room it will go in.
12. GO GREEN! Use towels and blankets to wrap fragile items. Save the environment AND Money too!
13. If possible, pack audio-video and computer equipment in their original boxes.
14. Do not pack valuables like jewelery, carry them with you.

East Meadow School District is a Contender: Watch Out North Shore!

By Cristina Callegari Kanellopoulos

Good news for residents in East Meadow Union Free School District #3 on Long Island arrived as the results of the 2008-2009 ELA (English Language Arts) and Math Assessments came in markedly higher than last year.

The School District has much to be proud of as the new scores indicate that programs and procedures implemented over the last several years are beginning to pay off. Some of the specifics are district programs that have been designed to improve instruction, and a series of professional development workshops with an emphasis on analyzing past test data to determine areas in which students need additional help.

The results are astounding! On the ELA Assessments, every grade level from 3 to 8 exceeded the county average, and in most cases, realized an increase in the number of students meeting proficiency. For example, in the 2007-2008 school year the percentage of students who passed the exam was 86%. However, in the 2008-2009 school year the percentage of students who passed the exam was 96%. Please see below for the full exam Results.

2008-2009 ELA Assessment Results:

Grade 3: 88%
Grade 4: 93%
Grade 5: 94%
Grade 6: 96%
Grade 7: 95%
Grade 8: 91%

2008-2009 Math Assessment Results:

Grade 3: 98%
Grade 4: 96%
Grade 5: 98%
Grade 6: 97%
Grade 7: 98%
Grade 8: 96%

These results put the East Meadow School District in line with, and in some cases ahead of, the high-performing Long Island School Districts of Roslyn, North Shore, Great Neck, Herricks and Port Washington. These districts are among the highest performing, most competitive school districts in the region, and the East Meadow results show that the school district means business.

This can only mean great things for the local Real Estate Market of East Meadow, and Salisbury (Salisbury is a Hamlet of Hempstead that is part of the East Meadow School District). Only time will tell, but I expect to see a boost in home prices if the school can keep this level of excellence up.

Kudos to you East Meadow Union Free School District!

Understanding the Advantages of CEMA: A Buyer's and Seller's Guide

by Cristina Callegari Kanellopoulos

When you are obtaining a mortgage in New York State the buyer of that home typically pays mortgage tax on the whole amount of the mortgage that they obtain. The mortgage tax in New York State is usually the largest amount a buyer pays in closing costs. This tax can easily account for 40% of the closing costs paid when purchasing a home. The mortgage tax rate in the 5 boroughs of New York City is generally between 1.8 to 2.55%! This accounts for thousands of dollars in closing costs that the buyer of a home can avoid.

The Advantage of CEMA to Buyers:
The buyer can avoid this tax in part, or in whole by obtaining an assignment of mortgage from the seller of the property. The savings is dependant upon the amount of the seller's existing lien. This assignment of mortgage must be approved by both the sellers mortgage holder and the buyers new mortgage company.

The Advantage of CEMA to Sellers:
The seller of the home also benefits from the assignment. In most cases the seller will avoid paying the New York State transfer tax they are obligated to pay when selling a home. The New York State transfer tax rate is $4 per $1,000 of selling price. If the seller chooses to assign the mortgage on their home, and the lenders allow this assignment, the seller can save thousands just for signing the authorization.