Could you be overestimating the value of your home?

Could you be overestimating the value of your home?  As it turns out, many homeowners are. 

Homeowners priced their homes an average of 1.69% higher than the appraised value in February, according to the National Home Price Perception Index from Quicken Loans. This is wider than last month’s spread of 1.47%, and the third consecutive month of increasing disagreement.  “Quicken Loans is in a unique position, with access to two valuable data points,” said Bill Banfield, Quicken Loans vice president of capital markets. “Homeowners tell us what they think their home is worth at the beginning of the mortgage process, then we compare that with the appraiser’s opinion of value.”

Read more at HousingWire.com.

Tax Benefits of Owning a Home: Do You Know Them All?

The joys of homeownership are many: Your own house is a place to make sweet memories, build a financial nest egg, and whittle down your tax bill. 

Wait, what? Yep, it’s true: Your home can save you a bundle on April 15.   

We’ve rounded up every last way to take advantage of the tax benefits of owning a home. Read on for the full rundown just to make sure you aren’t missing any, then pat yourself on the back for all the moolah you’ll save!

Tax write-off No. 1: Your mortgage interest

This is the biggie tax benefit of owning a home: the ability to deduct the mortgage interest you pay over the course of a year. And the more recent your mortgage, the greater your tax savings.

“The way mortgage payments are amortized, the first payments are almost all interest—so that’s why the mortgage interest deduction is worth the most in the first few years of the loan,” says Wendy Connick, owner of Connick Financial Solutions. 

Here’s how this deduction looks for a married couple in the 28% tax bracket (that means a joint annual income between $151,201 and $230,450) who bought a home with a $300,000, 30-year mortgage at a 4% interest rate. They will pay $11,904 in mortgage interest their first year. Once you add in the other itemized federal deductions below, these homeowners can expect to save at least $3,333 in taxes during their initial year of ownership.

Tax write-off No. 2: Your property taxes

Generally, your property taxes are deductible on your tax return, says Brian Ashcraft, director of compliance at Liberty Tax Service. And that could be a hefty savings. According to the U.S. Census Bureau, the average household property tax is $2,127. If you have a mortgage, your taxes are built into your monthly payment.

You can also pay property taxes early and write off the entire expense if you’re staring down a large tax bill for any given year. Just note that you must claim the deduction in the year you wrote the check. For example, if you paid your 2017 property tax in 2016, claim that tax benefit on your 2016 return. Here’s more info on how to calculate property taxes.

Tax write-off No. 3: Private mortgage insurance

If you put less than 20% down on your home, odds are you’re paying private mortgage insurance, or PMI, which costs from 0.3% to 1.15% of your home loan. But Uncle Sam’s willing to give you a tax break here by allowing you to deduct this amount from your income, too.

How much you’ll save: If you make $100,000 and put down 5% on a $200,000 house, you’ll pay about $1,500 in annual PMI premiums and thus cut taxable income by $1,500.

Note: The deduction is due to expire this year, says Connick. “Unless Congress renews it, the deduction will not be available for the 2017 tax year.”

Read more.

6 Surefire Signs It’s Time to Sell Your Home

Most people don’t plan on living in their first (or second or maybe even third) home forever, but knowing when the time is right to put that baby on the market can be tricky.

In fact, it can feel kind of like breaking up with a longtime boyfriend or girlfriend. Deep down, you knew you wouldn’t be with that person forever—but ending things can be way easier said than done.

Sometimes life changes force the issue: There’s little reason for self-doubt or trauma-level angst if you’re relocating to another state or you know your newborn twins won’t fit in your one-bedroom bungalow. 

But without a pressing reason staring you in the face, it can be hard to know when you’ve outgrown your home.

So how do you know when it’s the right time to let go?  Click here to read more.

See inside 'The Mary Tyler Moore Show' home that's on the market

Millions mourning the recent loss of Mary Tyler Moore will be heartened to see photos of the Minneapolis home where she lived in the popular ’70s show that carried her name.  

The stone Victorian mansion’s exterior was used in the show, but Mary’s actual apartment was a Hollywood set. 

It was meant to be behind the Palladian windows next to a turret on this Minneapolis home’s third story.  

In real life, that space is a family room with a gas fireplace, built-ins, and a beautiful view of the tree-lined street. 

The home is listed for $1.695 million with Barry Berg and Chad Larsen of Coldwell Banker Burnet.  Altogether, there are 7 bedrooms and 9 baths.

How Much House Can You Afford?

Find out using this great tool from SmartAsset.  

Remodeling Market Remains Positive in Fourth Quarter

The National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) dropped 4 points to 53 from the previous quarter, but remained above the breakeven point of 50, which indicates that more remodelers report activity is higher (compared to the prior quarter) than report activity is lower. Although the RMI declined, it is consistent with levels seen in the first half of 2016. 

The overall RMI is an average of two main sub-indices, one that tracks current market conditions and another tracking future market conditions. In the fourth quarter, the current market conditions index dropped 3 points to 53, but is still consistent with readings from earlier this year (Figure 2 to the right). 

Among its components, major additions and alterations dropped one point to 53, demand for smaller remodeling projects decreased four points to 52, and the home maintenance and repair component declined by five points to 54.

For more information from the National Association of Home Builders, click here.

Down Payment Calculator - How much should you put down?

How much should you put down for a house? 

SmartAsset's down payment calculator can help you determine the right down payment for you.

What is a down payment, anyway?

A down payment is cash that you pay up front before the mortgage starts. It’s money that signals to the lender that you’re a good candidate for a mortgage: you’ve managed to save up some money, and you care enough about the home to put a chunk of your savings toward making it yours.

Is a 20% down payment still the standard?

Actually, yes. Put any less than 20% down and you’ll have to find a way to secure the mortgage, either through insurance or a second loan. Exceptions to this are those who qualify for special home-buying assistance like the VA Home Loan, which helps veterans become homeowners without putting any money down. But ideally, buyers will have 20% of the value of the home saved up for the down payment.