Where R Rates / MBS Market Update

TARIFFS AND JOBS

We are starting down a little bit this morning due to global news. The Tariffs are beginning to take effect with Mexico and Canada and then the 10% tariff put on China on certain goods which is causing a little disruption in the market place.

JOLTS (Job Openings and Labor Turnover Survey) which measures job openings and folks quitting their jobs just came out as I type this. Job openings are down and quits are up so that should give us a little bit of a lift to compete with the tariff uncertainties.

We have two Fed Speakers as well today to add to the mix of what the markets will be hearing and processing the information they are putting out.

We could see a little bit of up and down today as we go through all the news coming our way.

GREEN is GOOD for Rates – RED is BAD for Rates

Click Here to Understand BPS

Product & Guideline Highlights

MILEAGE ADD BACK

When you are looking at a Schedule C income make sure you look on line item #9 where it shows car and truck expenses. If it has a balance in that line then you need to go to the second page of the Schedule C and look for line item 44A. 

This is the business miles that they wrote off for the year. Business miles are a form of depreciation that you can add back a portion of what they wrote off because it was not an actual out of pocket expense. This is good for Conventional and Govt loans.

The mileage write-offs and depreciation amounts changed for 2022, 2023 and 2024 so make sure you are taking full advantage of what you can use. Most people think it is 26 cents per mile that you get to add back.

For 2022 it was 26 cents. For 2023 it is 28 cents and for 2024 tax returns the depreciation ADD BACK is business miles x 30 cents. That is a 15% increase and that can go a long ways when you are counting the pennies to make a debt ratio work.

The tax write off that is allowed for business use of miles for 2022 was split between first 6 months and second six months. It was 58.5 cents Jan – June 2022 and July to Dec 2022 it was 62.5 cents.

2023 it went to 65.5 cents per mile.
2024 went to 67 cents per mile.
2025 is going up to 70 cents per mile.

As the total write off’s increase, the add backs increase as well. 

Make sure you are using the right numbers when calculating income and take full advantage that depreciation add backs can bring to a borrowers debt ratio.

Jackism of the Day

 GET CREATIVE

Do you have any idea how each and every one of us is completely different than everyone around us?

I mean we are unique beings created for a great purpose. There are certain things that each one of us can do that nobody else around us are capable of. Yet, we never really seem to tap in to that thing that makes us special.

Walt Disney said “Doing what others said was impossible is fun!”.

Isn’t that a cool statement. I absolutely love coming up with new ideas in all areas of my life. Whether it is writing a Jackism or creating a marketing piece, responding to a situation like most others around me would not do. How my wife and I live our lives and decide what is important to us and what is not without ever caring one iota about how others would do the same thing.

There is a certain freedom in declaring who we are as individuals, couples, families and employees. God created us unlike any other person in the world. There is no person exactly like us including identical twins. Whether it is our body features, our thoughts, mind, heart, spirit, purpose and anything else you can think of.

Be who you are meant to be. The good you. Not the bad you. Do not use I am who I am as an excuse to be a jerk or a menace to society. Use who you are meant to be to give you a reason to go for it, to get creative and to put your special blessing on this world in the way you have always wanted to.

I am not saying you have to create Disney World or be the next top originator in your company, state or nation or be an all star athlete. I am saying be you in the small things. What gives you peace, gives you hope, gives you joy in life? Do that for yourself and do it for others.

One of my mom’s special gifts is making pickles. She loves to make and jar pickles and give them out to those she encounters. I see her give them to her doctors, the guy that fixed her car, the neighbors, their physical therapist and especially me. She loves giving people pickles and people absolutely love receiving them.

I was there when she gave it to the car repair guy. It was like the greatest thing he has ever received. He also takes care of her whenever she has a problem.

For me it is writing and presenting it in a way others find joy in reading and in life. For me my life desire is to just immerse myself in the presence of God and let His will be my life. I fail miserably at it every day and then there are those moments where nothing in this world can touch me because of the peace and joy I find in just being with Him. It is one of those things I cannot convince you of. I can just tell you that He is very real and the greatest gift one could ever receive.

What do you love to do? What is your message? What way could you change the world around you today by being the you that you were created to be. I guarantee nobody else can be you so why not be the best you that you can be. Today!

And by all means. Don’t hesitate to also create the next Disney World if that is the vision, desire and passion you have within you.