Browse Month: October 2022

Flood Insurance: The Criteria for Getting It

A typical homeowners policy doesn’t account for a few natural disasters, such as flooding, that can damage or destroy a home. For homeowners who need protection from flooding, their only solution is to buy flood insurance sponsored by the federal authorities. A number of criteria exist which determine whether homeowners should have flood insurance.

Where You Live

You are required to buy flood insurance if you reside in an area designated as a Special Flood Hazard Area from the Federal Emergency Management Agency and you have a mortgage on your home. If you don’t have a lien against your home, you are not required to purchase a policy, even if you reside in an SFHA. According to FEMA, the SFHA is also referred to as a 100-year flood plain. This usually means the area has a one-percent prospect of being flooded each year.

Your House’s History

Regions that suffer significant flooding might be designated as federal disaster areas, which allows the authorities to provide financial relief if your home suffered harm as a result of the flood. If you take this fiscal aid, you must then carry a federal flood insurance coverage on your home as long as you live there. If you sell the home, the government requires you to tell the new owners about the property’s history along with the flood insurance requirement.

Your Loan

Since the government requires flood insurance on homes that reside in an SFHA and also have a mortgage, the two creditors backed by the federal authorities and non-government lenders require a flood policy. Non-government lenders require the coverage so their loans adhere to the standards set by Fannie Mae or Freddie Mac, which are backed by the authorities. Fannie Mae and Freddie Mac buy mortgages on the secondary financial market, and will not purchase mortgage loans which don’t adhere to those standards.

Determining Your Flood Zone

FEMA generates Flood Insurance Rate Maps, or FIRMs, which show the designated SFHA areas around the US. Homeowners, insurance suppliers, state catastrophe planning organizations and the federal government all utilize the maps, which are updated frequently by FEMA. The government uses a naming convention to signify levels of flood danger, which will be able to help you determine your house’s SFHA status. FEMA designates SFHA areas with codes which begin with the letter A or V.”V” suggests homes in the SFHA which are also subject to damage from waves made by storms. “A” stands for homes in the SFHA which are not subject to wave damage from storms. Moderate-flood zones are mentioned by the letter B, and low-flood zones are mentioned by the letter C or X.

Moving into an SFHA

FEMA’s FIRM upgrades can sometimes affect whether you have to purchase flood insurance. If you lived in an area which previously was not in the SFHA and the latest FEMA-updated FIRM places your property in an SFHA, your creditor should document that fact and ask you to buy flood insurance. There’s no waiting period for flood insurance if your SFHA status changes. In case you have not bought a flood insurance coverage by 45 days after being notified of the condition, your creditor has the right to buy a flood insurance coverage of its choice and bill you for it.

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What Does the Mortgage Bank Report to the IRS?

Several expenses are deductible on your income taxation. But the government isn’t going to take your word for it when it comes to reporting those deductions. It will compare the numbers you maintain with the numbers recorded by your mortgage lender.


Your mortgage lender will report to the IRS. If you paid some”points” if you closed your loan, the lending company will report those, too. If your lender requires you to cover mortgage insurance a common practice when a debtor lacks a large down payment — the amount you paid in premiums will be reported to the IRS. Any property taxes the creditor will be reported. All of these are expenses.

Mortgage Interest Record

To report this information, a creditor puts it all in an IRS record, Form 1098. Every creditor must file this form, which can be tagged”Mortgage Interest Statement,” with the IRS for every one of its borrowers every year. The creditor should also provide the borrower with a copy of the form.


If your creditor reimburses you for interest you overpaid in a preceding year, it is going to report that to the IRS on Form 1098, as well. If you claimed a deduction in that year to the interest, you’ll need to reduce the current year’s interest deduction from the quantity of the overpayment. Some creditors pay interest on overpaid monies that they hold inside their own accounts for a while. If your creditor pays more than $10 in interest on the money that you overpaid, it must report the amount to the IRS, too, and you’ll be expected to report it as income in your own taxes.

Claiming Deductions

You must itemize your income tax deductions, to claim deductions to the mortgage-related expenses reported on the IRS by your creditor. Use Schedule A to itemize.


Like most financial institutions, mortgage lenders are required by law to report large cash transactions. Should you use over $10,000 in money — actual U.S. currency — for any payment, such as for escrow, closing costs or loan payments, the notification requirement applies. Such transactions are reported by the creditor . When you are the subject of a Form 8300 filing, by law, you must be notified.

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How Can I Can a VA Short Sale?

If your mortgage is guaranteed by the Department of Veterans Affairs, and you are unable to sell it for the amount you owe on the loan, the VA will allow you to carry out a brief sale, or even a”compromise purchase.” Basic requirements include proof that you are experiencing a hardship that prohibits you from making your mortgage payments and that the home does not have any second liens.

Get in touch with your VA-approved”loss mitigation” lender. It is possible to determine your lender’s standing by checking the list at the VA website. Contact the VA, if your lender is not approved. Let the lender know that you are unable to make your mortgage payments and also will probably be selling the house upon VA approval of a compromise, or even brief, purchase.

Hire a real estate agent with experience handling short sales. Consult your lender for a recommendation or attend open houses and talk with the agent on duty about his experience. Another way to find an agent is to call a local real estate broker and ask to talk with the broker. Request her whom she has on staff experienced either short sales or, ideally, VA compromise earnings.

Consult your agent to compile a market evaluation of the house’s fair market value. With this advice, you can price the home suitably.

Signal the record agreement with the agent and also include a clause that protects you from having to pay a commission should the VA refuse your request for a compromise purchase.

Accept offers to purchase at fair market value only. The VA will not entertain supplies for less. Consult your agent to counter the deal, making it contingent on approval by the VA for a compromise purchase.

Fill out and sign a fiscal statement. You are able to get a financial statement form from your lender or download one at the VA website.

Complete a letter requesting consideration for a compromise purchase plus a compromise agreement sale application. This may be obtained from your lender, if it is VA-approved. Otherwise, obtain these forms from the VA website. Your agent will bundle these records along with the purchase agreement and send them to your lender or into the VA..

Await approval from the VA.. The processing time varies, depending on the area and how backed the lenders and the VA could be.

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The Way to Mortgage Tables & Use Excel

A mortgage table, also called an amortization table or schedule, is a very simple chart that shows the way the mortgage equilibrium varies with time following a collection of payments that are consistent. The table also calculates the monthly payment amount based on the entire mortgage value, the interest rate and the length of the loan. Mortgage tables can be created by you in Excel easily. The program provides financial purposes to figure payments, and the columnar grid allow for effortless arrangement of a payment collection. At the same time that you could plan Excel to create a mortgage table from scratch, many free tables are available on the internet.

Download the”Amortization Schedule for Excel” from Vertex 42 and distributed by CNET. This Excel recorder that is free provides a table arrangement that is formatted and pre-programmed formulas to finish any table. You do not want Excel programming knowledge to turn your table. Since the program includes all of the financial functions to figure your mortgage situation, you don’t need to fully understand the details of the mathematics, either, because they’re all taken care of for you. To use the”Amortization Schedule for Excel,” you simply type in the entire value of the mortgage, the interest rate and the duration or length of the loan. The program takes care of the rest by demonstrating due dates, payment amounts and the effect your interest and payments have on the rest of the mortgage balance with time.

Install official Microsoft templates for Excel that pay charts and mortgage and loan amortization schedules. Microsoft supplies templates of many kinds, at no charge, to Office users. The”Loan Consolidation program template” supplies all the fundamental components of a mortgage table: the amount of each payment, the portion of each payment that reflects interest paid, and the amount of each payment that contributes to paying down the mortgage balance. The template takes advantage of built-in financial functions in Excel to finish all of the calculations for you. Microsoft also supplies the”Loan analysis worksheet,” which displays a table for comparing different mortgage terms. You can observe how monthly payments vary based on small differences in rates of interest.

Download the”Mortgage and Loan Calculator Template for Excel” from Spreadsheets 123. This Excel spreadsheet contains several columns of information so you can control even the most elastic of payment programs on your mortgage. The mortgage includes choices for occasional extra payments. It keeps track of your total payments so far, and also calculates the interest you save by paying over the required amount each month. In addition to these features, it calculates all of the standard mortgage formulas, and shows how each payment contributes to the balance due.

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How to Compute a Prime Rate

The prime rate is a lending rate that banks use as a base rate for consumer lending solutions. Credit card and home equity line of credit rates tend to be tied to the prime rate. Most banks use the federal prime rate, which is printed in the”Wall Street Journal.” Since 1994, the prime rate calculation was based on changes in the fed funds rate determined by the Federal Open Market Committee of the Federal Reserve Bank.

Look up the current Federal Funds Target Rate, also known as the fed funds rate. This rate can be found on the Federal Reserve of New York site under Federal Funds data. As of August 2010, the fed funds rate is a target range of 0 to 0.25 percent.

Add 3 percent to the fed funds rate to get the current prime rate. Since 1994, the prime rate was set in the fed funds rate plus 3 percent. With the fed funds rate at 0 to 0.25 percent, as of August 2010, the prime rate is 3.25 percent.

Look up the date of the next meeting of the Federal Open Market Committee. The FOMC meets eight times a year and votes on the level of the fed funds rate. The new rate is announced on the same day of this assembly. The committee management calendar can be found on the Federal Reserve site.

Check the Federal Reserve site for any change in the fed funds rate on the day of the FOMC meeting. If the rate has changed, compute a new prime rate using the fed funds rate plus 3 percent.

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Guest Groups: Gorgeous Glassware to Get a Wine Bar

Only getting into wine and confused about which wineglass to purchase? Already a wino and want to expand your collection? Here are my favorite eyeglasses for all types and occasions, and as a sommelier and wine author, I’ve a lot of practice. They are good looking and practical, and there’s something for everybody (and every wine). Bear in mind that having the ability to observe the color of this wine increases the overall enjoyment of it, so almost everything I’ve chosen is in transparent glass. — Whitney from Brunellos Have More Fun


Govino Wine Glasses, Set of 12 – $38.85

With summer quickly approaching, picnics, beach time and outside arenas are in your future. All these Govino reusable plastic wineglasses would be the perfect thing for drinking on the go.

Hint: Save your very best wine for one more day and use these for cheap and enjoyable vino.

Wine Monger

Zalto Universal Glass Set – $354

Zalto wineglasses, produced in Austria, are a few super sexy stemware. They are delicate and tasteful, mouth-blown, and many wine geeks’ favorite stem. I favor the multipurpose glass because it is fantastic for white, red or even bubbly.


Bormioli Rocco Bodega Tumbler Mini Glasses, Set of 12 – $23

I really like a straightforward low tumbler for a weeknight red wine. You’ll discover these eyeglasses at wine bars all over Paris. No need for stalks or pretension.


Frosted Dot Coupes – $68

There’s just something special about drinking champagne from a delicate, conservative coupe. All these gold-rimmed, polka dot–etched coupes are beautiful and permit for all those fizzy bubbles and vibrant aromatics to reach your nose.


Rona Wineglass – $5.95

I consider this the cheaper option to the Zalto eyeglasses I love so much. It has a similar alluring shape and stem for a fraction of the cost.


Pokal Glass – $2.99

There’s something Italian trattoria about those glasses. I enjoy using them to get an easy red wine with spaghetti and meatballs during a laid-back Sunday dinner.

Casa de Perrin

Classic Light Purple Apéritifs – $58

How fun are these? A good deal of folks don’t think to completely like a pre-dinner drinking moment. Imagine this aperitif glass into your hand full of sparkling wine, an Aperol spritz, dry sherry or even Lillet on ice.


Bryn Grappa-Cordial Glass – $4.95

Grappa along with other digestifs are a wonderful postprandial soif that more folks should enter. This diminutive fashion of glass is made for the strong stuff, as a little goes a very long way.


Ikea 365+ Ivrig Wineglass – $2.99

Ikea actually has some fantastic wineglasses. They are cheap and (somewhat) durable. I really like the tulip shape and flexibility of this style.


Riedel Vivant Decanter – $32.99

You don’t require a large, fancy, pricey decanter to get the task finished. This may work just fine for some atmosphere to some closed-off wine, and it’ll look good on the table too.


Riedel Vivant Red Wine Glasses Set – $39.99

Riedel makes a cheap line of wineglasses for Goal. Their fundamental red wine glass is one I personally possess. It is fantastic for white, bubbly or red and is sturdy enough to withstand several dings and spills.


Cylinder Flute – $1.95

I am not a huge fan of classic champagne flutes. All fuss and not any pleasure, the rim is simply too narrow to actually dig to some wine. This tall stemless tumbler keeps the bubbles concentrated, but it isn’t as difficult to drink out of.


Lina Cava Flute – $14.90

Take this plus also a bottle of cava, and you’re set! It has the coupe shape I love to get sparkling wine and pretty scalloped etching.


Joao Tumbler – $4.90

If Gaudí made a stemless wineglass, it might look something like this. It spices up the stemless look and has a handy groove for your hand.


Magno Tumbler – $9.90

The depth and etching on this tumbler are ideal. You get a little flair without forfeiting the visibility of this wine. It is perfect for a warm spring afternoon and a glass of cold rosé.


Engraved Glass Rim Wineglass – $16.90

Zara’s home line is really great. This is the glass that you use when you need feel a tiny baroque and fancy.

Williams-Sonoma Home

Riedel Vinum Burgundy Glasses, Set of 2 | Williams Sonoma – $43.96

The classic burgundy bowl shape is great for if you truly wish to get your swirl on.

Williams-Sonoma Home

Classic Wine Decanter | Williams Sonoma – $69.95

This may not be the cheapest decanter, but it is not the most expensive. It has the wide space at the bottom to actually allow the wine breathe.

Wine Monger

Zalto Champagne Glass – $59.50

The Zalto champagne flute is beyond fabulous. It is perfectly constructed to maintain a fine bead of bubbles flowing from the base of the glass to the top. The tulip shape keeps the opening from being too narrow, which is a major pet peeve of mine. It is a splurge, but worthwhile!


Riedel O Cabernet/Merlot Wine Tumblers – $24.95

Riedel’s O show is the standard in stemless. This was one of the first wineglasses I ever possessed.

Next: 11 Space-Savvy Alternatives to Wine Cellars

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