This was forwarded to me from a lender I know and trust...
The FED committed 800 billion in additional money to help "thaw" lending out there which has spurred a frenzy in the bond market which dictates long term fixed interest rates. Even though the FED has committed funds for some time it has not resulted in any significant mortgage interest rate reductions as anticipated until now... There is speculation that rates will cool and rise back up as early as tomorrow but we never know...as evidenced by Wall Street, the financial sector and overall economy has never been so volatile as it has been recently!
What does this mean to you? If you are contemplating refinancing, consider your options now... 30 year Conventional and FHA rates are well below 6% and are down probably half a percent from yesterday...an unprecedented drop for a single day. There are options to refinance for no closing costs to minimize risk, ask me if that could make sense for you.
If you are looking to buy, now is time to optimize your rates if you can lock...
Take advantage... seriously!
Wednesday, November 26, 2008
Tuesday, November 25, 2008
$7,500 First Time Home Buyer Tax Credit
The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009.
Who is eligible to claim the $7,500 tax credit?First time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.
What is the definition of a first-time home buyer?The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
What types of homes will qualify for the tax credit?Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
For More Information go to:
http://www.federalhousingtaxcredit.com/index.html
Who is eligible to claim the $7,500 tax credit?First time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.
What is the definition of a first-time home buyer?The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
What types of homes will qualify for the tax credit?Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
For More Information go to:
http://www.federalhousingtaxcredit.com/index.html
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