First-Time Saratoga Homebuyers Alert: Only 26 Days Left to Qualify for FREE Tax Credit
by Michelle C. Carr-Crowe
First-Time Saratoga Homebuyers Alert: Urgent! There's only 26 days left to qualify for the U.S. Government's free tax credit of up to $8,000. If you or someone you care about has been “on the fence” about buying a home in 2010, I’ll get right to the point: there are financially sound reasons to carefully consider buying in spring 2010.
For example, 2010 is a good year to buy in San Jose, Campbell, Los Gatos, Palo Alto, Sunnyvale, Santa Clara, Saratoga or Cupertino IF you meet both of the following criteria:
1) You plan to buy a property for $800,000 or less
2) You have not owned a home in the last 3 years
3) You could benefit from the additional tax write-offs for mortgage interest
Currently, interest rates remain low. Even if prices go down later in the year, experts predict that the expected higher interest rates cost will make home ownership less affordable.
For example, an $800,000 home with 20 percent down ($160,000) means a loan of $640,000. At an interest rate of .05 percent, including allowances for principal and interest, the monthly amount would be ~ $3,435.66. When you include allowances for taxes and insurance, it results in a monthly investment of ~$4,522.33.
There are additional qualification requirements; to find out more details, send an email to firstname.lastname@example.org.
FYI, there are additional specific benefits for people who are 55 or older, blind or disabled, as well as those who and plan to sell in Santa Clara County and buy a home for the same price or less in Santa Clara County or one of six other participating counties in the Proposition 60 & 90 program.
Currently, the limited-time tax credit available to first-time homebuyers buying a property in 2010 has an important caveat: the home MUST be in contract by April 30, 2010, and it absolutely must close by June 30, 2010 to qualify.
This window is only open for a mere 26 days.
Is NOW Your Time to Buy a Home in Saratoga? Just Call (408) 252-8900 for a free, no-obligation consultation. We'll give you our honest opinion on whether buying a home during this special time will benefit you.
P.S. I also know of different homes not yet on the market with Saratoga Schools!
How Much Can You Afford? Our calculators will help you determine loan amounts, mortgage qualification, affordability or whether you should be renting or buying.
Your customized rent versus own analysis is based upon: An initial monthly rental payment of $3,000.00. We assume that your rent will increase by 2.5% per year. You are considering buying a home valued at $800,000.00, with a down payment of 20% or $160,000.00.
Your monthly mortgage payment of $3,435.66 includes both principal and interest and is based upon a loan amount at an interest rate of 5%. Because your down payment is less than 25 %, we have included Mortgage Insurance to be paid on a monthly basis.
Summary: By buying your home versus renting you will have saved $354,262.72 over the next 10 years.
(Net Appreciation - Total Investment Return + Total Rental Payment - Total Mortgage Payment)
Breakdown of this Analysis: Total Rental Payment: $406,921.74
Total Mortgage Payment: $606,679.01
Down Payment: $160,000.00
Home Value: $1,242,375.54
Interest Earned: $100,623.14
Remaining Loan Balance: $427,732.42
Total Investment Return: $260,623.14
Net Appreciation: $814,643.12
*This example is for informational use only and not a quote or rate guarantee. Call your licensed loan professional for specific rates, terms and qualifications for your unique situation.
Remember, with only 26 days left to qualify for the U.S. Government's free tax credit of up to $8,000, it's time to hop off the fence. Just Call 408.252.8900.