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Tax laws on home sale confuse homeowner

By Robert Bruss, Monday, April 19, 2004.

DEAR BOB: In 1999 I bought a house in Florida as a single woman. That same year, I married and moved to Washington, D.C. My daughter lived in the home and cared for it. I sold the home in 2003 at a profit. Can I take advantage of that $250,000 tax exemption you often discuss? I believe I should qualify due to the "unforeseen circumstances" clause and also "change of employment" of my spouse, so I don't have to meet the two-year residency requirement – Diane F.

DEAR DIANE: Nice try.  more...

Adjustable-rate risk is crucial question

By Jack Guttentag, Monday, April 19, 2004.

"I plan to pay off my home loan as soon as possible using an interest-only mortgage. Here are the figures provided by my loan officer: The payment on the 30-year, 5.5 percent fixed-rate mortgage is $567.79 for each $100,000 of loan, of which only $109.46 is reduction of principal. On the interest-only, the rate is 3 percent and the payment only $250. If I take the interest-only, but make the fixed-rate mortgage payment of $567.79, $317.79 of it will be applied to principal. This means that I will pay off my loan much sooner. Right?"  more...

Are interest-only mortgages a good deal?

By Dian Hymer, Monday, April 19, 2004.

Many home buyers are turning to mortgages with interest-only payment schedules so they can afford to buy a more expensive home. These mortgages have lower monthly payments, which makes qualifying easier. But the lower payments don't last forever, and interest-only loans aren't for everyone.  more...