Tuesday, March 16, 2010

Homebuyer Credits and Mortgage Rates

Two government programs which have kept home purchases affordable are set to expire within the next two months.

The Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end March 31. This will likely cause mortgage interest rates to rise from their current historical lows.

April 30 is the deadline to get a home under contract in order to qualify for the stimulus Home Buyer Tax Credit program (up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers). The buyer has until June 30 to close on their purchase.

While none of us has a crystal ball, it appears likely that loan rates will be higher in the near future and stimulus money from the government will not be renewed. These deadlines will affect both purchase and refinance funds.

If rates were to increase by 1%, for example, people who qualify for a $200,000 purchase today may only qualify for a purchase of $180,000 after the increase.

If you or someone you know is planning to purchase or refinance a home, now is the time to secure low interest rates and get money back from the government! Please contact me at HomeLandInvestment@gmail.com if you are looking for a great home deal to snag before these deadlines.

Keep in mind that you may also qualify for the Mortgage Credit Certificate (MCC) program, which has no current expiration date, if you are a first time homebuyer or haven't purchased in the last 3 years. There are always choices, but certainly more with today's low, low home prices. So please contact me if you are thinking of buying, because time is running out on some great financing options.

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