East Bay Real Estate Update: 2010 Tax Incentive Windows Are Closing!
March 14, 2010 by Jim Walberg · 4 Comments
Hopefully, all of you know that the first time and second time homebuyer tax credit that the Feds have in place ends next month, April 30th! If you are thinking of buying a home in 2010 that is $800,000 or below, the time to act is NOW! The tax credit for first time homebuyers is up to $8,000! And the tax credit for previous homebuyers is up to $6,500. There are some very simply qualifications, but they need to be met no later than April 30th! In order to qualify for this tax credit you need to be in escrow on a home purchase by April 30th, your loan qualification needs to be completed by that date, and the escrow must close no later than June 30, 2010. The home needs to be your primary residence, and you can use the tax credit for your 2009 tax returns or use it in 2010!
In addition, the lowest mortgage interest rate in years is available NOW! Why is this so important to a homebuyer? Well, the interest rate of your mortgage will actually have a BIGGER impact on the long term cost of buying a home than the tax credit. The tax credit is a one time event. Your mortgage interest rate will determine how much money you will spend out-of-pocket during the 30+ years of your monthly mortgage payments. The interest rate will also determine what the maximum price is of your home purchase.
For example: A couple with a combined pretax income of $100,000 a year, and monthly debt obligations of $500 excluding mortgage payments can qualify for a $590,000 home if the mortgage interest rate is 5%. Using the same example, if mortgage interest rates are at 6% this same couple could only purchase a home worth $540,000. Now do you see the importance of your mortgage interest rate? Today, it is UNDER 5%. Again, if you are going to purchase a home, act NOW.
Click Here for more information as to how you can qualify for this tax credit. There are only six weeks before it ends!
Related posts:
- 2010 East Bay Real Estate Update: Smart Sellers Are On The Market NOW!
- 2010 East Bay Real Estate Update: Challenges Facing $1 Million+ Buyer/Sellers
- East Bay Real Estate: 2010 Update – Short Sales Replacing REO’s!
Filed Under: Blog, Buyers, Featured Posts, News, Real Estate, Sellers
Tagged: Jim Walberg, Tax Credit
Thanks for the info on tax credits..
My pleasure, Rich. I look forward to you checking in again.