Archive for the ‘Home Buyer Tax Credits’ Tag
Now that the Home Buyer Tax Credit Extension Period Has Ended, Is it Still a Good Time to Buy?
Filed under: Home Buyer Tax Credit, Home Buying, Real Estate | Tags: Home Buyer Tax Credits, Home Buying, Real Estate, Richmond, VA, Virginia
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I believe so.
Recently, I read an article on REALTOR.org, below:
“Missing the tax credit deadline might have seemed like a big mistake to some home buyers, but waiting could have been the smartest thing to do.
Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.
At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.
The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.
That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit.
Source: Informa Research Services (05/26/2010)”
Here is a great video on ABC news’ web site explaining overall savings at today’s rates.
Not to mention the higher inventory levels, offering a great selection, it remains a great time to buy!
Facts About Tax Credits Available for Home Purchases in 2010
Filed under: Real Estate | Tags: Home Buyer Tax Credits, Home Buying, Real Estate, Richmond, VA, Virginia
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What a great time it is to buy a home – affordability is excellent, interest rates are at all-time lows, inventories are high, builders are offering nice incentives, and Uncle Sam is giving tax credits!
- The tax credits are available (as the legislation is currently written) for home purchases that go under contract before May 1, 2010. The transaction must close before July 1, 2010.
- There are 2 different credits available for individuals who buy a home to be used as a principal single-family residence, subject to the time frames above: the First Time Home Buyer credit, and the Repeat Buyer credit.
- For a buyer to take advantage of the First Time Home Buyer credit, an individual must not have owned a home for the past three years. For married joint filers, both must meet this criteria to take the credit on a joint tax return.
- The First Time Home Buyer credit is equal to 10% of the purchase price of the home, up to a maximum credit of $8,000.
- For a buyer to take advantage of the Repeat Buyer credit, the buyer(s) must have lived in their current home for five consecutive years of the past eight years.
- The Repeat Buyer credit is for eligible repeat buyers and the credit is up to an amount of $6500.
- Homes with a purchase price in excess of $800,000 are ineligible for any tax credit.
- The tax credit is subtracted from your tax liability for the year. If your liability is less than the credit you qualify for, you will receive a check for the difference.
- There are income limits for individuals and married joint filers: Adjusted gross income of $125,000 for individuals and $225,000 for married joint filers.
- The credit is phased down for those earning more than the limits above, and the credit is not available for those with adjusted gross income exceeding $145,000 for individuals and $245,000 for married joint filers.
- This credit is not subject to repayment, provided that the buyer(s) do not sell within the first three years after purchase.
Below is a YouTube video about the tax credits put together by Jeff Detwiler, President & COO and Barry Redler, Chief Marketing Officer of Long & Foster Companies:
Now is a great time to start the buying process. Please contact me and let’s get started!