Georgia Mountain Realtor

Realtors are quick to point out that home ownership allows a lot of tax advantages not available to someone who merely pays rent.  A homeowner can deduct points used to obtain a mortgage when buying a home or second home, mortgage interest paid during the year, and property taxes.

Your Biggest Deduction - INTEREST - If you have a mortgage on your first or second home, the loan is probably “fully amortized”.  This means a portion of your monthly payment actually repays the debt and another pays the interest.  After a scheduled period of time your mortgage on your real estate, first or second home is paid off.

If you use itemized deductions using a Schedule A, the interest portion of your mortgage payment is usually tax deductible.  There are condition:  the first condition is that your primary residence or a second home must be collateral for the loan.

Defining Home- Your home can be a house, co-op, condominium, mobile home, trailer, log cabin, or ever a houseboat.  For trailers and houseboats, one requirement is that the home must have sleeping, cooking, and toilet facilities.  Even a rental can be considered a second home, provided you live in it either fourteen days out of the year or at least ten percent of the number of days you rent it for, whichever is greater.

Interest as a Tax Deduction- At the end of each year, your lender should send you a form 1098.  This form tells you how much you paid in interest and points during the year.  This is your deductible interest, provided you meet certain conditions.

If you obtained the loan prior to October 13, 1987, the loan is considered “grandfathered”.  All interest paid on grandfathered loans in a given year is fully deductible.  After that, there are conditions, but most conditions won’t apply to most homeowners or land owners.

Home Acquisition Debt (and IRS Term)- An important IRS term is “home acquisition debt”.   Any first or second mortgage used to buy a second home, build on real estate, or improve your home is considered to be home acquisition debt.

Acquisition debt can be a first or second mortgage used to buy your home.  If you get a second mortgage and use it all for home improvement, that is also considered acquisition debt.  If you do a “rate and term” refinance and don’t get any “cash out” - since you are just refinancing your home or real estate acquisition debt - that also can be considered acquisition debt.

For any of the above types of loans that aren’t “grandfathered” - you can still deduct all the interest- but only if your total mortgage debt does not exceed one million dollars.  For married couple filing separately, the limit is $500,000 each.

Home Equity Debt (another IRS Term) - The IRS has another term call “home equity debt”.  Basically, this is any loan amount in excess of what was spent to purchase a first or second home, build on real estate, or improve your home.  If you get “cash out” when refinancing your home, the amount in excess of your original loan amount is considered “home equity debt” - unless some of it was used for home improvement.  For second mortgages, it works the same way.

For the interest to be fully deductible, home equity debt cannot exceed $100,000 and the total mortgage debt on the home must not exceed its valve.  This can create a problem for those using 125% loan-to-value second mortgages to consolidate debt.  That portion of the loan amount that exceeds the value of your home is not tax deductible (unless you used it for home improvement on your first or second home).

Deducting Points When Refinancing - Points paid during refinancing must be deducted over the life of the loan.  For a thirty-year loan, you divide the points by thirty and you get to deduct that amount each year.

However, there is an exception.  If you did a “cash out”refinance and used some of the funds to improve your primary residence, a portion of the points are deductible in the year you paid them.  That portion is realted to how much of the loan was used for home impovement.  Save your receipts!

Deducting Property Taxes -Most homeowners pay property taxes to a local, state or foreign government.  In most cases, property taxes are deductible.  They must be charged uniformly against all property in the jurisdiction and must be based on the assessed value.

Many states and counties also impose property taxes for local improvement to property, such as assessment for street, sidewalks, and sewer lines.  These taxes cannot be deducted.  Local property taxes are deductible only if they are for maintenance or repair, or interest charges related to those benefits.

Impound Accounts -Many mortgages have impound or escrow accounts.  The borrower’s payment exceeds the amount necessary to pay the principal and interest.  The excess goes into an account used to pay property taxes, homeowner’s insurance and mortgage insurance.  When calculating your property tax deduction, don’t deduct what you pay into that account.  Only deduct what is paid from the account to the taxing authority.

Second homes are available in the Blue Ridge Mountains with an captivating view.

Penny Tow - Freelance Writer

Fannin County is the gateway to the Blue Ridge Mountains on the Georgia, Tennessee, North Carolina border. Over 40% of the county’s land (160,000 + acres) is located in the Chattahoochee National Forest, with rugged forested peaks, some ranging over 4,000 feet above sea level.

Land Area: 390.3 square miles

Altitude: 1,750ft above sea level ( over 4,000 feet at Cowpen Ridge)

Latitude: 34 degrees, 53 minutes

Longitude: 84 degrees, 20 minutes

Lake Blue Ridge is a 3,290 acre lake formed by TVA’s Blue Ridge Dam. 80% of the Lake is National Forest. The Lake at full pool is 1,690 feet above sea level.

Tips for First Time Home Buyers and those wishing to purchase a second Home - Buying a home can be a long, complicated and frightening process, and it is important to be prepared.  Knowledge is power when it comes to negotiating the difficult world of home prices, interest rates and mortgage loans.  For a first time home buyer and those wishing to purchase a second home (ex. Log cabins for a get-a-way home), there are many factors to consider before you buy.  The more information you can gather before you start shopping, the better off you will be.

Look Beyond the Price - When it comes to securing a quality mortgage loan, it is important to look beyond the interest rate to the true cost of the loan, both now and in the future.  Read the paperwork, including the fine print, carefullly, especially if the interest rate is below market rates.  Upon closer inspection you may find that the interest rate is guaranteed for only a short period of time, or that it is subject to rise sharply in the future.  Your mortgage loan may be the most important contract you will ever sign, and it is essential that you understand your rights and your responsibilities before signing on the dotted line.

Many communities provide some sort of first time homebuyer or those wishing to purchase a second home program designed to help renters become homeowners, purchase a log cabin as a get-a-way home, these organizations may be able to provide the legal advice you need at a price you can afford.

Every Situation is Unique - Every homebuyer will have a different set of circumstances, and it is important for the lender to consider those factors.  Some homeowners may plan to move in and live there a year or two, and they may be able to benefit from a variable rate mortgage.  Others will plan to remain in their home for decades, and those home buyers may benefit from the stability of a fixed rate mortgage and its predictable and stable monthly payment.  Some may wish to purchase a log cabin for a second home.

It is also important for those buying a first home to factor in the additional cost and the high price of private mortgage insurance.  Which can drive up costs and eat into funds that would otherwise be available for home improvements, furnishings and other essentials.  In some cases sellers may be willing to pay some of the closing cost, and some lenders will be able to negotiate those closing cost downward .  The key is to ask questions before the closing date arrives, and to be prepared to search for a better deal if necessary.

First time buyers should also be on the lookout for any hidden fees.  These small nuisance fees can add up to hundreds of dollars on closing day, so be sure to scour your paperwork for any such fees.  If you are unsure about the legitimacy of any charge be sure to ask for a valid explanation.  Again, an experienced real estate attorney can provide valuable insight into which fees are reasonable and which are out of bounds.

And of course first time home buyers should not lose sight of the home itself in the quest for the perfect mortgage.  Any defects should be pointed out to the seller well before the closing is to take place.  The costs of every needed repair should be carefully negotiated prior to the purchase, and buyers should always follow up to make sure that all requested repairs have been made.  A home is a major purchase, and it is important to make sure that everything has been taken care of before moving in.

Penny Tow - Freelance Writer

With the Labor Day weekend right upon us, I thought that it would be educational to each of you to know the meaning behind Labor Day.  Labor Day has always been the first Monday in September, observed as a holiday in the US and Canada in honor of working class citizens.

Peter J. McGuire on May 8, 1882 proposed to the New York City Central Labor Union that this day be set aside as a “Labor Day”.  It is still celebrated mainly as a day of rest and marks the symbolic end of summer for many.

Many of us celebrate this holiday with picnics, barbecues, fireworks displays, water sports, and many other outside activities.  Parents with school-aged children make this their last traveling weekend before the end of summer.  If this sounds like your plans for the Labor Day weekend - May I suggest a trip to the North Georgia Mountains?  You have all that you need awaiting your arrival - accommodating hotels, live music at most restaurants, a raging river just waiting to carry you away.  Most of all - we cannot forget the relaxing surroundings that captivate your senses while enjoying the scenic views.  Why wait - make your plans today.

Oh yes ladies, shall we not forget the old custom of “Not wearing our White Shoes after Labor Day”.  Many of you will be at ease knowing that this custom is fading from popularity as it continues to be questioned and challenged.  Fashion magazines are jumping on this growing trend, calling people who “dare” to wear white after Labor Day “Innovative, Creative, and Bold”.  So, place those pearly whites on your feet and have a wonderful, safe, fun filled day.  Be blessed in all that you do.

Annual Events in Blue Ridge include the Blue Ridge Mountain Adventure Race in April, sponsored by the Fannin Chamber and Arts in the Park, held each Memorial Day. July 4th activities include the Old Timer’s Day Parade in downtown Blue Ridge, and fireworks at Lake Blue Ridge.

Labor Day is celebrated with an interdenominational  barbeque lunch with live gospel music in downtown Blue Ridge City Park. See ya there!

The Toccoa River is one of Georgia’s most pristine trout streams. It has its headwaters in Union County, flows into Fannin County and becomes the major feeder stream for Lake Blue Ridge. It resumes it’s flow below the Blue Ridge Dam and travels north into Tennessee, where it is known as the Ocoee River. (Part of the Olympic games were held on the Ocoee River a few years back).

It is very beautiful drive. The water quality is great as well - very clean water on the Toccoa. Trout fishing is excellent. Now above the dam, the  Toccoa River is located about 7 miles out Aska Road. Up there there’s lots of rural valleys, mountain laurel, and rhododendron thickets and lots of wildlife.

The river also has lots of rapids that you can canoe down. There is a place that you can pull over and walk out on these great big rocks. I use to lay out in the sun there when I was a teenager. Loved it! A lot of people like to take inner tubes and float the river in the summer. Too cold for me, but my nine year old loves it! She goes to a Christian camp called CampLink that takes her there in the summer.

If your hungry while your out Aska Road enjoying the beauty, stop and eat at a place called the Toccoa Riverside Restaurant. The food is excellent. Get the pecan crusted trout! It is out of this world. I wouldn’t get the prime rib, though - it’s a hit or miss. But the trout is always out of this world good.

If you do order the Prime Rib or anything else that maybe you decide you don’t like, please don’t say anything to the owner. He’ll just take your plate and tell you he has nothing else for you. My advice is just pay for it and not say a word, unless you don’t mind an embarrassment. He really takes pride in his food.

At this point you are probably saying to yourself - how does she know this, did this happen to her. No, I use to work there on the weekend about 8 years ago made really good money. The best waitress job I ever had. It’s amazing that a restaurant could be so busy so far out there. It’s 8 miles out of Blue Ridge but it sits right on the Toccoa River. It’s definitely a place you would really enjoy stopping at. The food is excellent!

Oh and one more thing I forgot to tell you - don’t stop to use the bathroom without at least buying a soda drink or something. There is a country store in the building so there are plenty of things to pick up and buy. If you think you can stop and just use the restroom, it’s not gonna happen! He’s got everyone patrolling the bathrooms. He’s a pistol!

Toccoa Riverside Restaurant is a great business and people come from everywhere to eat the trout. Get the window table if you decide to go!

Welcome to my blog! Home of beautiful Blue Ridge, Georgia. If you’ve never been to Blue Ridge you really must come and visit. What a place. Majestic mountains on every corner! The famous Toccoa river! Beautiful Lake Blue Ridge!

Lake Blue Ridge is one of the cleanest lakes in the United States. It also has really great fishing. The water is very clean.

Blue Ridge is also known for all the antique stores in beautiful downtown Blue Ridge, and let’s not forget the train that everyone loves to ride! Blue Ridge is 40% forest service.

Real Estate is a second home market here. Most of the people that buy are buying for investment or just to have a place in beautiful Blue Ridge. People just love it here and so do I!