There’s a lot to talk about on Today’s Show.
CDs Are Looking Like A Better Deal
Interest rates are starting to rise, which means that CDs are looking like a better place to park your cash. Wachovia is offering 4.25 percent on a 1-year CD and Countrywide is offering 5 percent on a 5-year CD. You don’t want to lock up your cash for too long, so take advantage of a 6-month or 1-year CD only. You may want to consider “laddering” CDs so that they roll over and mature at different times.
New Tax Rule Changes to the 24-Month Exclusion for Home Sellers.
This is a big change folks, and we’ll spend some time on it today. Here’s how the rule was: You could sell your home every 24 months, provided you lived in it as a primary residence, and then you could keep up to $500,000 (if you’re married, $250,000 if you’re single) in profits tax free when you sell. The rule is now changing. If you sell your primary residence and move to a vacation home you’ve owned, you’ll need to live there for five years as your primary residence, or you won’t be able to take the full exclusion. The change refers to “nonqualified use,” and it refers to any period of time (after 2008) when the property isn’t used by you, your spouse or former spouse as a principal residence. It is effective for sales beginning January 1, 2009.
How Does Georgia Compare for Closing Costs?
The new BankRate Survey is out and Georgia is 43rd on the list with an average closing cost of $2,900 on a $200,000 house.
Overdraft Fees Rising At The Nation’s Ten Largest Banks.
You don’t want to overdraw your account if you’re at one of the following banks: Bank of America, Chase, CitiBank, Fifth Third Bank, National City Bank, PNC, SunTrust, U.S. Bank, Wachovia, and WAMU. According to the Consumer Federation of America, consumers are paying at least $17.5 billion in fees each year.
Freddie Mac Doubles Financial Incentives To Servicers Who Help Borrowers Avoid Foreclosure.
Fannie Mae and Freddie Mac have been paying loan service companies for years to help them help homeowners avoid foreclosure. Now, Freddie Mac is stepping up the payments to give an added incentive to servicers to keep people out of foreclosure. How much are they getting? Starting August 1, 2008, compensation for repayment plans will rise to $500, while doing a loan modification will earn a servicer $800. For short sales, where Freddie Mac agrees to accept less than the full amount owed on a borrower’s loan, the compensation rises to $2,200 (because short sales take so much time to work out).
It’s going to be a great show. We’re on from 11a to 1pm at www.wsbradio.com. I hope you can join us.
Aug. 10, 2008.
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