Here's an equation to be happy about:
Low Interest Rates + $8000 Tax Credit = Lots of Tangipahoa Mortgage Applications
With interest rates dipping below the 5% mark recently and the deadline for the $8000 First Time Home Buyers Tax Credit looming (must close by November 30, 2009 to qualify), many local Tangipahoa Parish banks and lending companies are experiencing a flood of calls inquiring about refinancing their current mortgages or applying for new ones. The tax credit has been a major incentive for buyers to purchase properties, helping to lift the slow sales over the last year. In fact, approximately half of all purchases lately have been first time homebuyers wanting to cash in on the tax incentives for their first Tangipahoa home.
Another benefit of the lower interest rates in the Tangipahoa real estate market seem to be propelling homeowners to start considering refinancing their current mortgages as well. This has created another refi boom and kept mortgage and loan companies very busy. Even if your credit scores are below the 720 required for the best mortgage rates, you can still get a good deal if you pay even part of a point. As of Thursday, October 8, interest rates were at 4.875 with no points for a 30-year loan while 15-year loans were at 4.375 with no points.