August 12, 2010
By
Dick Baker
Maybe, but you haven’t missed out on the savings!
Attention home buyers! You are probably aware that the federal government offered tax credits on home purchases with contracts accepted by the end of April, 2010. For first-time buyers that could have amounted to as much as $6,500. That was certainly an incentive to buy.
If you think you missed the boat, consider this. If you commit to a home purchase soon while mortgage interest rates are the lowest anyone in our industry can remember, you should be able to save nearly the same amount in interest as you would have received in a tax credit! How so, you ask?
Here are the numbers for a very common scenario in the Toledo real estate market, and you can substitute different numbers to fit your family’s specific circumstances. A $100,000 mortgage last September would likely have been made at an interest rate of 5.1%. Today, you are likely to get a mortgage loan at 4.5%. In our market, many people remain in their home about ten years. The difference in the interest a homeowner would pay after ten years on those two mortgage loans amortized over 30 years would be approximately $5,848. In other words, those who missed out on the tax credits can realize nearly the same benefit over time simply because of declining interest rates!
Of course the interest savings are much more significant over the life of the loan and definitely greater for higher mortgage amounts – this was simply intended as one typical example. If you would like to calculate your own mortgage payment, The Danberry Co., Realtors and First Mortgage Consultants can help! Just go to: http://www.danberry.com/mortgage_calculator/
June 21, 2010
By
Dick Baker
Any prospective homebuyers who backed off from their Toledo, Ohio, and metropolitan area house-hunting because they feel they missed out on the tax credits should consider this. Maybe a check won’t arrive from Uncle Sam, but you might get a mortgage today at a rate considerably below the one you would have gotten during the program. The net impact could be that you will actually realize a greater savings over the time you own your home than if you had gotten the tax credit!
Many “experts” nationwide speculated that the expiration of the tax credit program would take the wind out of the sails (sales?) of a rapidly improving real estate market, but the mortgage market is definitely propping up activity.
If you made it this far reading the blog, chances are good you might be among those searching for Toledo real estate who could benefit. What are you waiting for? “Historically low rates” will not last forever! Contact The Danberry Co., Realtors or a First Mortgage Home Mortgage Consultant today!
April 28, 2010
By
Dick Baker
We all know that the federal tax credit opportunity ends at midnight Friday. That’s the deadline for have contracts fully executed, and then we need to get them closed by the end of June. But what if you find the perfect Toledo real estate listing on Saturday . . . or Sunday or Monday?
Some well-meaning people feel that it’s no big deal to bend the rules; they may be tempted to back-date a contract to April 30th in order to qualify for an $8,000 or $6,500 gift from Uncle Sam. Don’t ask a Realtor to participate in that scheme! The Danberry Co. will not. It may seem harmless, after all, what’s a day or two, especially over a weekend when you probably wouldn’t even make a mortgage application? What’s the difference? You would be asking your Realtor to risk losing his or her license. You would be engaging in tax fraud, and the federal government has teeth. You don’t even want to think about the fines and yes, prison time.
So let’s get back to positive topics. Those tax credits may be disappearing, but where does that leave us? It leaves the Toledo real estate market facing terrific conditions! Interest rates remain at historically low levels, despite predictions that they are on the rise. Our listing inventory remains high, meaning great housing choices. Many prices are at the lowest level in years. And now we enter our traditionally strongest spring market. So come on out and join us at a Danberry open house. We’d love to discuss the housing opportunities-Toledo homes for sale and the surrounding market property listings- available to you right now!
November 5, 2009
By
Dick Baker
Congress has been debating a revision of the current tax credit for first-time buyers for many weeks, and it appears that terms encouraged by The National Association of Realtors have been approved by both the House and Senate, awaiting only the President’s signature which he has said is forthcoming! This is hot off the press, but we believe the following key provisions to be reliable:
Amount of tax credit: 10% of the purchase price up to $8,000 for first-time home buyers (defined as those who have not owned a home in the last 3 years); and (new) $6,500 for repeat buyers who have resided in their home for at least 5 years..
Income limits: $125,000 for single filers; $225,000 for joint filers.
Price limit: Homes over $800,000 do not qualify.
Time frame: December 1, 2009 to April 30, 2010, plus a 60-day extension to close if a binding contract is in place by April 30, 2010 (close before June 30, 2010).
Filing for the credit: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
This writer has been a Realtor for 40 years, and never before have I witnessed a better time to buy! The purchase of a home is a very complex process and Danberry would love to be your guide and counselor. Please let us know how we can help you!
