The prospects for real estate buyers in McKinney just keep getting better. Interest rates have been below 5.0% much of this week. A friend of mine took the plunge and refinanced locking in one of these recent rates. He is going to reduce his payments by about $500.00 per month. He will save about $18,000 over his projected three year stay in this house. This more than pays for the cost of the refi and puts money in his pocket.
I have also begun working with a couple of first time buyers (That is anyone who has not owned a home during the last three years.). Both buyers have excellent credit scores and some money in pocket to pay the 3.5% FHA down payment. They are really excited about the possibility owning a home. They will also benefit from the federal government tax credit for first time buyers. This will give them a credit of $7,500 against their taxes when they file next year. If they don't owe that much in taxes, they will get the difference refunded from the IRS. The only catch is that two years from now they have to begin repaying the credit $500 each year for the next 15 years. The tax credit is really an interest free loan to be payed back over 15 years. Check with a mortgage lender for all the details. Add to these benefits the deals builders are offering on inventory homes in several McKinney neighborhoods, and we have a unique situation. Buyers will have to qualify for the loans and make a small down payment, but aside from this, for the qualified buyer, there may not have been a better time recently to buy that first home.