WASHINGTON - Buying a home is about to get cheaper for a whole new crop of homebuyers - $6,500 cheaper.
First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package. But with that program scheduled to expire at the end of November, the Senate voted 98-0 Wednesday to extend and expand the tax credit to include buyers who already own homes. The House is expected to vote on the bill Thursday.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers - or anyone who hasn't owned a home in the last three years - would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
The bill would also provide every American running out of unemployment insurance benefits this year with an additional 14 weeks of payments. Those in states with unemployment rates at 8.5% or greater would get six weeks on top of that. And it would allow companies losing money to reclaim taxes paid in the past five years.
"This is probably the last extension" of the real estate tax credit, said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the extension.
The homebuyer tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in the bill extending unemployment benefits. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.
"We are still in a world of economic hurt, and Congress must continue to act boldly and creatively," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "With the right mix of tax breaks and investments we will get through this recession and get folks working again."
The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate without a dissenting vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.
"For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home," Bond said. "And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place."
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.
The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.
The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break - for companies with revenues of $15 million or less - in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.
The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.
"It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns," said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.
The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.
Awesome 1900 sq ft ranch on a peaceful 1 acre tree lined lot. Spacious GR that can be overlooked by the KIT/breakfast bar creating the ideal layout. Large MBRS w/dual vanities and walk-in closet. Hobbyists will love the 34x30 insulated shop with a 12 ft door. Finished rec room. Dining room is easily converted to 3rd BR. BR off rec room has two windows, but not to egress code.
The 30 year fixed rate inched slightly higher today. The 30 year fixed is now at 4.875% for loans from $200,000 to $417,000 with a 740 credit score and a minimum down payment of 10%. See the attached Mortgage Plans and Rates for more details.
Commentary:
The Dow closed above 10,000 points on Wednesday, stronger than expected news from the labor sector, a report confirming inflation pressure remains benign and only a slight uptick in the core consumer price index have combined to put upward pressure on interest rates today. This is all good news. In a separate report the Labor Department announced first time claims for jobless benefits fell by 10,000 during the week ended October 10th. This data tells a story of dwindling layoffs, but details in the report also shows the pace of hiring is nothing more than a trickle. The number of those claiming extended benefits or enrolling in the Emergency Unemployment Compensation programs continues to grow. Until hiring of those that are unemployed improves, our economy will continue to struggle.
All for now.
(The above info was provided by: Ralph Leach, Loan Officer, Ameristar Mortgage Corporation,Cell 414-202-8093)
Private 4.72 ac on Oconomowoc River, just a moments boat ride to Oconomowoc Lake. The open layout compliments entertaining w/friends from vaulted ceiling greatroom, wall to wall windows, a GFP & patio doors to the deck. A Chef's kitchen w/granite counters & SS Viking apll. MBRS w/sunroom & private balcony. Two BRs & office on UL just past the catwalk. LL boasts Recroom, media area & Guest Suite.
The time is coming! Dewy, crisp mornings with scent filled air. The anticipation of day break and the first rays of sun on tree limbs. Sounds of breaking twigs and rustling of leave. Yes, soon fall will be hear and in Wisconsin, the hunting season has already started.
It's time to enter the Kettle Moraine Forest and see all it's wonders. Even better, own you own home and land or just some recreation land, which is located adjacent to the Kettle Moraine Forest.
Here are two premier properties offered by Response Realtors in the heart of the Kettle Moraine.
4 wooded acres for wildlife or hunter enthusiasts in the KM forest. Deer, turkey, fox and bird paradise. Home is in impeccable condition, granite counters, two fireplaces, located off the road, on a quiet park-like setting. Glass/screen gazebo, workshop and lowest property tax rate in Waukesha County. Enjoy all the seasons.
Piper Rd., Eagle, WI $324,900
Your piece of paradise! Adjacent to the Kettle Moraine Forest, walking and riding distance from horse, cross-country ski, snowmobile and mountain biking trails. Great building location with level prairie for pastures with a backdrop of forest. If you like the outdoors, privacy and wildlife, look no further. 5.97 acre lot or 18.25 acres also available.
The 30 year fixed rate dropped below 5% today. The 30 year fixed is now at 4.875% for loans from $200,000 to $417,000 with a 740 credit score and a minimum down payment of 10%. See the attached Mortgage Plans and Rates for more details.
Commentary:
News from the Labor Department earlier this morning showed labor market deterioration is easing - but only gradually. For the week ended September 5th, first-time claims for jobless benefits fell by 26,000 to 550,000. First time claims are expected to continue to decline at a snails-pace through the balance of this year and into 2010. Most analysts will not likely sign off on the idea that the most massive consolidation in the labor secure since the Great Depression is over until the weekly first-time jobless claims number levels off in the neighborhood of 350,000 on a weekly basis. We still have a ways to go before the economy recovers.
All for now
Have a great weeken
The above info was provided by Ralph Leach, Mortgage Loan Officer
Ameristar Mortgage Corporation
Cell 414-202-8093
So, with mortgages rates low and great deals on home prices, now is the time to call a RESPONSE REALTOR!!!!
Convient location with a 180 ft deep lot for privacy and entertaining.
This home has open living area and a spacious kitchen. All the closets have custom woodwork and the kitchen is full of custom storage including a lazy susan pantry. There is no shortage of counter space. Three car garage makes this home you next move.
Only $147,500.00. Don't hesitate to call us about this property or the one below!!!
Old World Charm with newer foundation and roof. That's right, there is a story to tell here.
This house was moved to this location about 12 years ago. They cut the top off and rebuilt it. The top floor had a new roof, insulation and bathroom installed. The house was built sometime in the 1930's. Was a 2 story Victorian at the time. All the woodwork is original and has a huge and gorgeous built in hutch. The room sizes are all generous and nicely laid out. The house was moved from the lot the skate park was on. The upstairs was rebuilt at that time. It was very well insulated and storage spaces added at the time. Everything was updated recently. The windows and doors are newer. There are ceiling fans in every room! The heating and air were put in after the move. It was moved on to a brand new basement foundation.
Only $149,900
Top 15 reasons to buy this house
Location - minutes walk to downtown, 3 parks within walking distance.
The Setting - Jefferson street is quiet. The house is at the end of the street and surrounded on three sides by empty lots. So it feels like the country with the amenities of the city of Whitewater.
The wildlife - We have lots of animal visitors, turkeys, birds, deer (currently a doe and 2 fawns) even a fox once.
The woodwork - The house has all the charm of an older home but the conveniences of updated electricity, plumbing, gas heat and air, plus a newer basement foundation.
2 bathrooms
Large room sizes
Large lot
Nice size kitchen!
Lots of room to spread out
You can entertain over 20 people comfortably - inside the house!
Close to walking trails and the skate park.
Easy access to hwy 59
Lots of open space from the dining room all the way through to the living room
The Fed has all ready begun to curtail purchases of mortgage-backed securities by cutting back from their purchase pace of $21 billion a week to about $12 billion a week.
The Feds are keenly aware that in order to entice private investors to take their place as a major buyer of mortgage-backed securities, rates will have to drift higher.
It is reasonable to expect mortgage interest rates to begin a slow rise relative to other prevailing rates.
Great time to buy a home while the rates are still low.
The above info was provided by Ralph Leach, Mortgage Loan Officer
Custom ranch on 6+ acres w/many amenities! Gourmet KIT boasts SS appliances, breakfast bar and cathedral ceiling. Dinette opens to the sunroom, w/CT floor, through French doors, then out to the deck. LR offers GFP and patio doors to deck. MBRS has it all: WP tub, dble vanity, CT, patio door and FP. LL w/direct walk-out to heated 3-car GA, BIBC and wet bar. Additional 2+car GA/workshop.
Good Afternoon: The 30 year fixed rate inched lower today. The 30 year fixed is at 5.125% for loans from $200,000 to $417,000 with a 740 credit score and a minimum down payment of 10%. Commentary: The number of workers filing for first-time jobless benefits rose by 15,000 during the week ended August 15th - fanning worries of an anemic recovery from the worst recession in 70 years. Mortgage interest rates will be influenced by trading action in the stock markets for the balance of the week. Higher stock prices will tend to drag mortgage interest rates higher while lower stock prices will likely prove supportive of steady to fractionally lower mortgage interest rates. Growing doubts over the speed and strength of the budding economic recovery will likely soon take a toll on any near-term stock market rally attempt.
All for now.
Have a great Wisconsin Weekend.
The above information was provided by:
Ralph Leach, Loan Officer Ameristar Mortgage Corporation Cell 414-202-8093
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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