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Archive for first time buyer tax credit

Vanishing Credits and Advantageous Interest Rates!

Just a short note to remind all of you regarding the upcoming expiration of the First Time Buyer’s Tax Credit and MBS-Mortgage Backed Securities.

(1) The First Time Buyer’s Tax Credit will still be applicable to your transaction(s) if you have a valid open escrow by no later than April 30, 2010, and that escrow closes by no later than June 30, 2010.

(2) The extremely advantageous interest rates for home loans are expected to remain low until the Feds discontinue their backing of MBS-Mortgage Backed Securities. The Feds are scheduled to cease buying MBSs at the end of this month – March 30, 2010. When that happens it’s projected home loan interest rates will begin to rise and probably go up at least 75 basis points (0.75%) in the near future. If you are already in escrow make sure your lender has locked your loan and, even if your escrow closes April 1st or after, the interest rate of your new loan is protected (for the duration of the lock).

(3) Current Interest Rates for 30-year Fixed Rate Loans as of 3/16/2010:

A) Conforming Loans at $417,000 or under – 4.75% with 1 pt.

B) Conforming Loans under $729,500 – 5.00% with 1 pt.

C) Jumbo Loans between $729,500 to $2,000,000 – 5.25% with 1 pt.

First Time Home Buyer Tax Credit 2010

Frequently Asked Questions About the First-Time Home Buyer Tax Credit

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010.   However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

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