Thanks to Charlie Pitkin of The Outlaw Real Estate Group for providing this blog post.
Changes to the Homebuyer Tax Credit Law Frequently Asked Questions About the New Bill Listen to NAR President Charles McMillan's Podcast About the Bill Passing See How the House Voted In Depth: 2009 First-Time Home Buyer Tax Credit Watch the Entries in the Tax Credit REALTOR Party Video Contest
More FAQs...
-- _____________________________Charlie Pitkin Outlaw Real Estate GroupPartner | Consultant512-514-0302 | 866.278.4330 fCharlie@AustinRealEstateIQ.com www.OutlawRealEstateGroup.com
The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date. The credit would be available until April 30, 2010. Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home. The credit currently applies only to first time home buyer.
The Senate vote was 98 to 0
Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.
Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively. Above those limits there are diminishing credits available.
The bill was passed as an amendment to legislation extending unemployment benefits. The House is expected to vote on the bill before the end of the week.
Housing interests, especially the National Association of Home Builders and the National Association of Realtors, has pushed strongly for the extension and the Obama administration has also lobbied heavily for its passage. However, not everyone was in favor of it.
Some critics have charged that the tax credit has merely moved sales that would have occurred sooner or later to an earlier date and that, when the credit finally does go away, the market will experience another severe downturn. A diametrically opposed opinion would have it that, while 1.4 million claims have been made, few sales were actually inspired by the credit. Others have argued that the current interest rates and low housing prices are enough of an incentive without spending tax money. The extension is expected to cost an estimated $11 billion on top of the $10 billion that has been spent to date.
There have also been charges of fraud in the operation of the program. To combat this the new law has some expanded safeguards including a minimum age of 18 for obtaining the credit, a requirement that a settlement statement accompany the tax return claiming the credit and a prohibition on non-arms length transactions.
Another criticism of the extension has been that it ends just as the "spring market" is getting underway. Diane Olick writing for CNBC's RealtyCheck said it "is sort of like offering cheap snow boots in July."
Aaron Page Mortgage Consultant Land Mortgage ph 512-924-3138 fx 512-895-9144 apage@landmtg.com Mortgage Banker #43954
Dead Or Alive: Will Congress Extend the Tax Credit?
Land Mortgage · November 3rd, 2009
This week members of Congress should answer one of the biggest questions to affect your business in quite some time: Will the tax credit be extended? The current $8,000 first-time homebuyer tax credit is scheduled to end on December 1st, 2009. According to many news agencies, the US Senate deliberated about an extension last week and has agreed to vote on Thursday, November 5th, to possibly extend the tax credit into the spring of 2010.There is no doubt that the tax credit has been a major incentive for first-time homebuyers to purchase their first homes. Different news organizations have reported different versions of new details and wrinkles with the purposed extension. At this point there is nothing set in stone. We are monitoring the situation closely, and the second we hear concrete details we will send them your way. We're here to be a resource and serve you better. All we ask for is the opportunity to earn your business. Please let me know if you have any questions.
Sincerely,Aaron PageLand Mortgage
Tax Credit Extension News:
Bloomberg · MSNBC · MLP Blog
Land Mortgage · 8300 N. MOPAC · Suite 225 · Austin, TX · 78759 · 512.850.4108
Rates are still hovering around or right under the 5% mark so it is STILL a great time to REFI if you missed the REFI BOOM that took place over the first 6 months of 2009. Don't miss this small window as rates could move higher in a matter of weeks or even days. Contact me today and I will provide you a complimentary REFI evaluation to make sure a REFI makes sense for your situation. Call me today at 512-850-4108. Thanks and have a great week!
Here is a free resource for you that talks about the right time to do a REFI.
I'm reposting a previous post from January about refi's.
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Happy 2009!
I thought you would enjoy this article as it highlights exactly what I have been sharing with you over the past month. Bottom line, % rates are at all time lows and should continue to stay that way for a few more months. Take action now by finding out if a refinance makes sense for you or get off the fence and move on that home purchase you’ve been waiting for. Call me to get pre-approved or see my list of “Trusted Realtors” for an Agent you can trust.
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After attending a Get Motivated Seminar back in early December, I recently received an email from Tamara Lowe, Co-founder and Executive Vice President of Get Motivated Seminars, Inc. I recommend reading the first chapter of her new book, GET MOTIVATED!. It's free and after reading it myself I was truly inspired and have decided to order a copy.
Enjoy,
Aaron Page
Land Mortgage
"Interest rates for 30-year fixed-rate mortgages fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," said Frank Nothaft, Freddie Mac chief economist, in a news release……………………
A few months ago The Austin Businesss Journal listed Land MTG as the 4th largest Mortgage company in Austin! A big thank-you to all of our clients and business partners who made this possible. We are here to serve your mortgage needs so feel free to contact us anytime!
Have a great week!
~ Aaron Page
I have a free article for you entitled, "The Right Time to Refi".
Just click the link below to receive your free article
THE RIGHT TIME TO REFI!
~ Aaron
I’m writing to make you aware of how mortgage interest rates have dropped recently. You’ve probably heard in the news that NOW is a great time to refinance your home mortgage or lock in a great % rate on a new home purchase. With interest rates in the low 5% range and a possibility of rates dropping further I’m encouraging you and anyone you know to explore whether a REFI makes sense for you.
Contact me if:
1. You or anyone you know is interested in refinancing to:
2. You are looking to lock in a great % rate for a new home or investment purchase.
3. You are looking to purchase or refinance a commercial property under 500,000.
Click here to see a chart of how much $$ you could save each month by refinancing your current mortgage.
Contact me today and I will provide you with an honest hassle-free quote and help you figure out if a REFI makes sense for your unique situation.
Sincerely, Aaron Page Land Mortgage 8300 N. Mopac Suite 225 Austin, TX 78759 (512) 924-3138 apage@landmtg.comwww.aaronpage.com
Fed Actions Have Mortgages Roaring
Much ado about everything this am, as the Federal Reserve announced the creation of Term Asset-Backed Securities Loan Facility (TALF), a facility that will help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA).
Under the TALF, the Federal Reserve Bank of New York (FRBNY) will lend up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. The FRBNY will lend an amount equal to the market value of the ABS less a haircut and will be secured at all times by the ABS. The U.S. Treasury Department--under the Troubled Assets Relief Program (TARP) of the Emergency Economic Stabilization Act of 2008--will provide $20 billion of credit protection to the FRBNY in connection with the TALF. The vintages are for newly and or recently created loans on Autos, Credit Cards, and SBA lending.
The Federal Reserve will also commit up to $500 Billion toward the purchase of GSE and FHA mortgage-backed securities (FNMA, FHLMC, and GNMA labels). This is what was needed when TARP was originally broached to Congress and should make for the inverted or extremely positive price action to drive rates lower. Flows have been two way, as money managers have been early buyers while banks are sellers at these elevated levels.
Currently, the 30yr stack is up over two points along the new 30yr Current Coupon champion 5%s ($101 handle) while 4.5%s head toward par themselves-$99- handle. 15yrs are operating much the same way as 15yr CC is now 4.5% at a low par handle. Treasuries are well higher themselves with the 10yr note now 3.13%, and the 2s/10s yield curve flatter and back toward +190. Swaps are nine to 16 bps firmer this am as well. MBS spreads are one point tighter in 5.5%s, and 55/32nds tighter along CC 5%s. 4.5%s are in a massive price correction mode and are "seen" loosely at two points firmer thought the price action the next few days will be more indicative-with next week"s fuller trading even more definitive. 15/30 swaps are logically lower 1/2 point off the flatter curve and rampant 30yr action. OTRs have lost that "loving feeling" in GN/FN space while Golds are almost in line to longer FNMAs. Albert Durso -- Thomson Reuters
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