If you're thinking that you missed the boat because you didn't get in on the federal tax credit, think again! Two very important points so please read through.
1. If you're a service person and served in military, overseas for 90 days or more between January 1st 2009 and April 30th 2010, you are still eligible to receive the first-time home buyers credit of $8000 or the repeat home buyers tax credit of $6500. The same basic rules apply as far as signing the contract and closing accept that it is extended through to 2011 for these individuals. In other words the contract must be fully executed by April 30th. 2011 and the closing must occur before June 30th 2011.
2. If you are thinking about buying, it is very likely that interest rates are going to start rising again soon. (The last graph I observed showed them leveling off) Did you know that a .05 percent rise in the rate with a conventional mortgage on a 400K home reduces your buying power by 25K. That means you can now only buy 375K worth of home. That might not make a lot of difference to you but if it goes up 1 percent, now you can only buy 350K worth of home. That might start making some difference. This could mean the difference between having a pool and not having a pool. Guess what happens if it goes up 2 percent...you just went from a 400K home to a 300K home. These days that could very well mean the difference between ocean view and rain water view."
I think you get the point. I heard this little bit of information in a recent Realtor.com presentation of course sanctioned by National Association Of Realtors. So don't think you've missed the boat yet! This is still an opportune time to be buying a home!!
Oh buy the way if you're selling you may also want to consider this when pricing your home so you get it sold while interest rates are still low. Needless to say your "pool" of buyers is much greater when interest rates are low!! So don't you miss out either.
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