Active-duty soldiers, vets alike get new housing help from Capitol Hill
Five large banks have agreed to streamline the process that allows military personnel to reduce the interest rate on home loans and other debt, the latest in a string of recent moves to help active-duty service members and vets meet their housing expenses.
Q. I am in the military, stationed in Fort Hood, Texas. My brother recently told me I am eligible to have the mortgage interest rate on the home my wife and I own in Arkansas automatically capped at 6 percent, but he didn't have any details. Do you?
A. Sure. But first, let me thank you for your service to our country.
A federal law that went into effect in 2003 allows most active-duty military personnel to cap or reduce their mortgage interest rate - plus the rate on several other debt-related fees - to 6 percent. But many servicemen and servicewomen still don't know about this money-saving break, and even those who do have not taken advantage of the program because they haven't wanted to deal with all the paperwork it entailed.
Fortunately, the program got a big boost two weeks ago. That's when President Barack Obama announced an agreement with five of the nation's largest lenders - Bank of America, Wells Fargo Bank, CitiMortgage, Quicken Loans and Ocwen Loan Servicing - to streamline the rate-reduction program and launch an aggressive effort to make their borrowers more aware of its availability.
The companies also pledged to check Defense Department databases frequently for the names of customers who are entitled to unclaimed benefits. The National Economic Council says that if your mortgage or other eligible debt totals $200,000, a mere 1 percent reduction in the interest rate you pay could save $1,500 or more each year.
The announcement came just days after the Department of Veterans Affairs said it was awarding $300 million in grants to hundreds of nonprofits in all 50 states that provide housing services to homeless or low-income veterans. The grants are expected to help about 115,000 vets and their families transition into permanent housing or, for those who already have a roof over their head, help meet their rent payments or related expenses.
Other grants that the VA announced earlier this year included one that provides up to $68,000 in cash to vets and active-duty personnel who suffer from ALS, commonly known as Lou Gehrig's disease. The money can be used to build, buy or adapt a home to remove the barriers in a typical house and allow the occupant to have a level of independence that he or she might not otherwise enjoy.
Information about these and other programs for active-duty personnel and our nation's veterans can be obtained by calling the VA benefits line at (800) 827-1000, or by visiting its outstanding website, www.va.gov.
Q. I really like the tips you have been giving out over the past several months about what home-related items are best to buy and when. So, what deals can I find in September?
A. Thank you for your compliment. I'm pleasantly surprised at the number of readers who like this type of advice, whether they are first-time buyers looking to inexpensively furnish their new home or longtime owners planning to remodel.
If you need a new barbecue grill or outdoor patio furniture, it's finally time to buy. With most big retailers anxious to sell their summer-related items before the colder months arrive, experts at bargain-hunting website CreditDonkey.com say that you can expect discounts of 50 percent or even 75 percent off grills and the like, because slashing prices is a better alternative than storing them for the winter and wasting floor space that can be used for autumn or holiday items in the weeks ahead.
Most summer barbecues and many patio sets come in one or two prepackaged boxes. So, if you don't need to assemble them now, just tuck the cartons away until next year to avoid rust and save space.
Many types of flowers and plants also go on sale this time of year, because nurseries and gardening centers don't want to spend the extra money to store or tend them as the cooler weather arrives. Look for "buy one, get one free" deals or discounts of up to 75 percent, except on those that can withstand the colder months - asters, mums and the like.
If you're in the market for a new washer, dryer or other appliance but missed the deep discounts that were offered over Labor Day weekend, don't fret: You might see even larger price cuts on Thanksgiving or the infamous "Black Friday," which follows the next day. Ditto for those planning to buy a new TV.
It's also worth noting that many retailers are once again planning to extend the sale prices that they will begin offering on Black Friday throughout that weekend or even through the following several days.
Q. We hired a contractor to repaint the outside of our house. Can we deduct his $1,227 bill on our next income-tax return?
A. Sorry, no. The Internal Revenue Service considers repainting normal "maintenance or repairs," which cannot be deducted on your next return or used to lessen any taxes you may owe when the property is eventually sold.
Real estate trivia: The VA is celebrating the 70th anniversary of the original GI Bill this year, noting that it has now guaranteed more than 20 million home loans. About 90 percent of them were made through the agency's various no-down-payment plans.
• For the booklet "Straight Talk About Living Trusts," send $4 and a self-addressed, stamped envelope to David Myers/Trust, P.O. Box 4405, Culver City, CA 90231-4405.
© 2014, Cowles Syndicate Inc.