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As we near the end of 2016, we wanted to make you aware of a few key changes to home loans and taxes.....
Mortgage rates have increased .5% since the election. While rates are still near historic lows, they’re definitely showing signs of increasing as the Federal Reserve has also indicated there’s a 92% chance they will hike rates in December.
This doesn’t mean mortgage rates will immediately bump up again, as the .5% mortgage rate increase over the past few weeks has essentially already priced in this hike in advance. This is because president-elect Donald Trump indicated he felt the Federal Reserve has been keeping rates artificially low, and that future changes are necessary.
Mortgage Loan Amounts
Fannie Mae & Freddie Mac have announced they’ll be increasing 2017 conforming loan amounts from $417,000 to $424,100. This change is being made to account for the nationwide increase in home values over the last several years. The increase will help more homeowners qualify for conforming loans, which carry superior terms versus those loan amounts which exceed the conforming loan limit.
Social Security Wage Base
The Social Security wage base is increasing from $118,500 to $127,200. This is an increase of more than 7% versus no change from 2015 to 2016. As a result, the max amount of Social Security tax a taxpayer could pay will increase from $7,347 in 2016 to $7,886.40 in 2017, an increase of $539.40.
We’ll see what other tax changes will come about as a result of the election, as president-elect Donald Trump has hinted at some overhauls.
You can be sure we’ll keep you updated!
Feel free to contact us with questions...we’re here to help!