Check out these tax changes for '08-'09 and a couple tax tips. They could add up to some sweet savings for you and the family:

• E-file Fed returns for free — To help you weather the economy, the IRS now offers free electronic filing option called Free File Fillable Tax Forms for just about everybody. Click here for details.
• Deduct more, save more — Standard deductions for property taxes increased $1,000 for joint filers and $500 for singles. For first-time homebuyers, there's also a tax credit of up to $7,500.
• Savings go back to college — Congress reinstated the deduction (up to $4,000) for college tuition and fees paid in '08 and '09.
• IRAs get deducted, too — Get a full deduction if your modified adjusted gross income's less than $53,000 (single/head of household) or $85,000 (married filing jointly). For higher incomes, partial deductions are allowed.
• Recently refinanced and paid points? — You may be able to save money with a deduction. A $150,000 mortgage balance could save up to $750 on your return.

As always, make sure to consult your tax advisor if you’re not clear on any of this.

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When it comes to picking a mortgage lender, a little homework can save you a lot of money (and frustration). Here are a few tips:

• It's free to shop around — Don't just sign up for whatever your local bank is offering – compare interest rates and fees from a variety of lenders. You’ll be surprised by all the dollars you can save when comparing offers.
• Stick to your price range — Make sure you can afford points, possible fees (if any), closing costs, insurance costs, property taxes, maintenance expenses, etc.
• Take time to compare offers — If you spend some time comparing lenders' offers, you'll most likely find out that you could save some money each month and over the life of a mortgage. Here are 4 different types of lenders to consider:
  • Midsize banks and thrifts usually hold onto the loans they write, so their adjustable-rate loans often have attractively low rates and fees.
  • Large banks traditionally make most money outside the mortgage arena, but could possibly offer good rates if you have other accounts with them. They also tend to be leaders in jumbo loans.
  • Mortgage brokers serve as go-betweens for you and the lender. They can find you several loan offers but there's usually a markup for their services.
  • Mortgage bankers make most of their money on fixed-rate loans and typically sell their loans to other lenders.

Despite the tough economy, finding the right mortgage can still be a rewarding experience if you do your homework.

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