It's a great time to buy a home

Home Buyer Tax Credit Could be Expanded

Richard Strang, recs,srs,sfr — Tue, 23 Jun 2009 10:32:00 GMT

A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it.

A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:

Setting a new cap of $15,000.

Extending the tax break into mid-2010.

Making the benefit available to all home buyers, not just first-timers.

Offering a separate tax credit to $3,000 for borrowers who refinance.

NEW INFORMATION ON THE 1ST. TIME HOME BUYERS TAX CREDIT

Richard Strang, recs,srs,sfr — Wed, 20 May 2009 14:15:00 GMT

HUD recently announced that qualified First-Time Home Buyers who want to take advantage of the available tax credit of up to $8,000 now have another option available to them to help them become homeowners.

It's clear that first-time home buyers have been having a major impact on the housing market this year. The National Association of Realtors announced that first-time buyers, who typically account for less than 40% of home sales each year, have been especially busy…in March, homes that were purchased by first-timers accounted for 53% of all sales, and this percentage is expected to hold true for all of 2009.

With home affordability higher than ever, available tax credits and some of the lowest interest rates ever recorded for home loans, who can blame them? Particularly as a first-time buyer, there may never be a better time to buy a home than right now.

However, the availability of a tax credit, while a great incentive, does not put the money in the hands of a buyer right away. HUD's announcement now allows for prospective and qualified home buyers to borrow the money from approved agencies and lenders.

While details of participating lenders and HUD-approved agencies are not yet available, this should turn up the heat on prospective buyers to get busy searching for their next home. As further details become available, I will get them to you. If you are wandering if you quailfy for this tax credit just give us a call or email and we will answer your questions.

The barrier to homeownership is being removed and the time to start shopping is now!

MORTGAGE RATES REMAIN AS 3-MONTH LOWS

Richard Strang, recs,srs,sfr — Fri, 09 Mar 2007 13:42:00 GMT

A lack of definitive economic data helped keep mortgage rates at the lowest point since mid-December, Bankrate.com reports.

Mortgage rates declined for the fourth time in the past five weeks, with the average 30-year fixed mortgage rate dropping to 6.19 percent. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.3 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing was unchanged at 5.95 percent. On larger loans, the average jumbo 30-year fixed rate inched higher to 6.42 percent. Adjustable rate mortgages were mixed, with the average 5/1 ARM moving up to 6.04 percent and the average one-year ARM sliding to 5.94 percent.

Mortgage rates remained low on evidence of slower economic growth. Last week, the fourth quarter Gross Domestic Product was revised sharply lower. This week, both productivity and factory orders came in lower than forecast. Although a survey of the manufacturing sector was stronger than expected, the larger services sector slowed notably. The prospects for slower economic growth help buoy demand for Treasury securities, pushing bond prices higher and yields lower. Mortgage rates are closely related to yields on long-term government bonds.

Fixed mortgage rates are notably lower than last summer when the Fed last raised interest rates. At the time, the average 30-year fixed mortgage rate peaked at 6.93 percent, and a $165,000 loan carried a monthly payment of $1,090.00. With the average 30-year fixed rate now 6.19 percent, the same loan originated today would carry a monthly payment of $1,009.50. Fixed mortgage rates are a refinancing alternative for adjustable rate borrowers facing sharp payment adjustments

Seahorse Realty has formed an alliance with Bank of America

Richard Strang, recs,srs,sfr — Thu, 25 Jan 2007 19:25:00 GMT

It is now going to be easer and more profitable to sell and purchase home thru SEAHORSE REALTY.

Bank of America is offering 100% financing and are waiving orgination and appraisal fees in addition to closing cost credits to buyers who purchase a home with SEAHORSE REALTY. The advantage to sellers is that this will make their home more attractive to all the home buyers in the marketpace. To learn more about this alliance and other benefits go to our HOME PROTECTION PLAN page.

What to know before buying a fixer-upper

Richard Strang, recs,srs,sfr — Mon, 15 Jan 2007 13:39:00 GMT

A home in need of repair can be a good deal, especially if buyers are able to do some of the repairs themselves.

Here are three major things to think about when considering a home in need of major improvements:

Location, location location. Is the lot well located with good topography? Will the improvements you propose make it worth as much as — not a lot more — than other homes in the neighborhood?

How much? Calculate what the home would sell for if it were in great shape. Subtract the cost of repairs, then take off another 10 to 15 percent for unexpected problems. If you can’t get the property for that, then it's probably a bad deal.

Prepare for the mess. Get ready for renovations to take longer than expected. Also, know the cost and realize that your life will be disrupted if you need to live somewhere else while the work is being completed.

Mortgage Insurance (PMI)

Richard Strang, recs,srs,sfr — Tue, 09 Jan 2007 00:19:00 GMT

Mortgage insurance will be tax-deductible in 2007. For some homeowners, the new law means it will cheaper to get mortgage insurance instead of getting piggyback loans.

The 109th Congress passed the tax law in its final hours. Hundreds of thousands of homeowners will save a total of $91 million when they file their tax returns in 2008, according to estimates prepared by the mortgage insurance industry.

"This is really going to help close to a million Americans who will buy a home next year using mortgage insurance," says Kevin Schneider, president of U.S. mortgage insurance business for Genworth Financial.

Bottom line for consumers: Don't get a piggyback loan without taking a serious look at mortgage insurance, because mortgage insurance is likely to be cheaper in the long run, and it might even cost less in the short run.

According to an analysis by Bankrate, a homeowner with a $180,000 mortgage would save about $351 in taxes per year because of the law. That assumes that the borrower has good credit and is in the 25 percent tax bracket.

It's a great time to buy a home.

Richard Strang, recs,srs,sfr — Thu, 21 Dec 2006 19:51:00 GMT

Right now may actually be one of the best times to buy a home. Consider these facts:

Interest Rates Near Record Lows. Today's interest rates are comparable to 40-year lows, affering homebuyers a once-in-a-lifetime opportunity.
Large Inventory won't last. There are currently 3.75 million homes for sale. We have had a record inventory of homes on the market in recent months, offering consumers the greatest choice in decades.
Prices Overall Have Stablized.
Real Estate is a great investment. Homeownership is a safe, secure way to build long-term wealth. The national median price of homes bought ten years ago has increased approx. 88 percent.