Hello Holidays Bloggers@ While, most folks are out Christmas shopping, homes are selling! Home buyers always seem to ask the same question, “is now the best time to buy a home?” Raleigh real estate and Cary real estate is “on sale”, but still home buyers ask, “Is this the bottom of the market?” Here are the facts.
Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn’t overly dramatic, the dip is likely to get people wondering whether it’s time to sign on the dotted line.
The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.
Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.
Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried. E-mail me now to see if you qualify for our current “no money down” loans at Marti@MartiHampton.com
In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess? Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.
Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.
But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.
Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.
If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a “strike” interest rate at which to lock in the loan, a good move considering rate volatility.
Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.
Any home buyer that has not owned a home in the last 3 years qualifies for the $8000 Federal Tax Credit. But did you know that those same home buyers may also qualify for an additional $2000 MCC housing credit, earning them an incredible $10,000 the first year they buy a home and up to $2000 per year for 10 MORE YEARS!
Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now—low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.
On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.
Our teams list of pre-foreclosure homes is growing by leaps and bounds. Top neighborhoods in Cary and North Raleigh now have some outstanding home values?
Idea! Is this the year for keys to your new homes in your Christmas stocking?
As always, God Bless and thanks for stopping by.
Tuesday, December 15, 2009
Monday, November 16, 2009
Operation Real Hope
Hello Real Estate Bloggers.
Today, very little about Raleigh real estate and much about how many poor families we can join together and help this holiday season.
We need your help collecting coats and canned goods to be given to the poor this Holiday Season. Please join RE/MAX One Realty agents by going through your pantry and closet! Coats for all ages and sizes, new or in good condition will be accepted. Foods should be non-perishable food stuffs.
Please help someone in need stay warm and have a hot meal this year. Bring your donations to RE/MAX One Realty, 100 Lynn Road in Raleigh at the corner of Six Forks and Lynn directly across from the CVS. We will be open to receive your donations between 9 to 5 Monday through Friday. Call 919-781-9883, e-mail me at Marti@MartiHampton.com or just drop by from 9 to 5. Donations will be collected between now and Dec 11.
Feel free to contact me for more information! Thank you.
Today, very little about Raleigh real estate and much about how many poor families we can join together and help this holiday season.
We need your help collecting coats and canned goods to be given to the poor this Holiday Season. Please join RE/MAX One Realty agents by going through your pantry and closet! Coats for all ages and sizes, new or in good condition will be accepted. Foods should be non-perishable food stuffs.
Please help someone in need stay warm and have a hot meal this year. Bring your donations to RE/MAX One Realty, 100 Lynn Road in Raleigh at the corner of Six Forks and Lynn directly across from the CVS. We will be open to receive your donations between 9 to 5 Monday through Friday. Call 919-781-9883, e-mail me at Marti@MartiHampton.com or just drop by from 9 to 5. Donations will be collected between now and Dec 11.
Feel free to contact me for more information! Thank you.
Saturday, November 7, 2009
Tax Credits for All!!
Dear Bloggers: I just received word that the US House passed the unemployment extension bill that contains the homebuyer tax credit extension/expansion and NOL carry back just a few minutes ago. The final tally was 403 to 12. We had a very strong bipartisan showing.
The tax credit extension would allow the first time home buyer tax credit of $8,000 to continue for homes under contract by April 30th with construction completed by June 30th. It also created a new tax credit for existing homeowners (who have been in their homes 5 years or more) of $6,500 until April 30th.
The full vote tally will be posted here in about 30-45 minutes, if you want to see how particular members voted:
http://clerk.house.gov/cgi-bin/vote.asp?year=2009&rollnumber=859
The bill now goes to the White House. We do not yet know when the bill will be sent over to the President or when it will be signed, other than we expect it to occur quickly.
It’s good to know they can agree on something in Washington! This will help real estate in Raleigh and Cary real estate and the entire Triangle! So I would consider the possible passage of this bill as good news for buyers and sellers. God Bless you and yours. marti
The tax credit extension would allow the first time home buyer tax credit of $8,000 to continue for homes under contract by April 30th with construction completed by June 30th. It also created a new tax credit for existing homeowners (who have been in their homes 5 years or more) of $6,500 until April 30th.
The full vote tally will be posted here in about 30-45 minutes, if you want to see how particular members voted:
http://clerk.house.gov/cgi-bin/vote.asp?year=2009&rollnumber=859
The bill now goes to the White House. We do not yet know when the bill will be sent over to the President or when it will be signed, other than we expect it to occur quickly.
It’s good to know they can agree on something in Washington! This will help real estate in Raleigh and Cary real estate and the entire Triangle! So I would consider the possible passage of this bill as good news for buyers and sellers. God Bless you and yours. marti
Thursday, October 29, 2009
How about a Tax Credit for Move Up Home Buyers?
Dear Real Estate Bloggers, For those of you keeping score on the first time home buyer tax credit extension, here is the latest:
— The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).
— Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.
— The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction within 60 days.
— The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.
— Cost of the home may not exceed $800,000 to be eligible.
— For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.
— Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
— The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.
— The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.
AND supposedly, sometime after 11a, the Treasury and HUD Secretaries will officially call on Congress to extend the credit and the higher conforming loan limits.
This is the latest update from Washington. No doubt it will impact the Raleigh real estate, Cary real estate and entire Triangle market for the coming months. Please e-mail me with any questions Marti@MartiHampton.com
stop by again soon.
— The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).
— Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.
— The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction within 60 days.
— The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.
— Cost of the home may not exceed $800,000 to be eligible.
— For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.
— Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
— The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.
— The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.
AND supposedly, sometime after 11a, the Treasury and HUD Secretaries will officially call on Congress to extend the credit and the higher conforming loan limits.
This is the latest update from Washington. No doubt it will impact the Raleigh real estate, Cary real estate and entire Triangle market for the coming months. Please e-mail me with any questions Marti@MartiHampton.com
stop by again soon.
Wednesday, October 28, 2009
Washington will extend the $8000 tax credit, or not? It looks good for now.
Hello Dear Bloggers, Just a short update on the $8000 tax credit. There is no doubt the tax credit has helped Raleigh real estate rebound in sales. Here is what we know right now on the status of will the $8000 tax credit be extended?
WASHINGTON (Reuters) - Top Democrats in the Senate have reached an agreement to extend the soon-to-expire $8,000 tax credit for first-time homebuyers, Senate Banking Committee Chairman Christopher Dodd said on Tuesday.
"We have that. Done," Dodd told reporters. He declined to specify the details of the agreement.
But a Republican who has worked with Dodd cautioned that they were still negotiating on the measure, which could come up for a vote on Tuesday evening as part of a package that would extend unemployment benefits.
"We're close, we're close but I can't get into any details until it's a done deal," said Republican Senator Johnny Isakson.
The popular tax credit, which has helped lift the housing market out of its worst slump since the Great Depression, is set to expire on November 30.
Dodd and Isakson want to extend the credit through June of next year and broaden it to anyone buying a primary residence, not just first-time buyers.
Senate Majority Leader Harry Reid had backed a narrower version which would extend the full credit through March and gradually phase it out through the end of 2010.
Dodd said that the deal would merge the two proposals.
We are sitting on the edge of our seat waiting and watching until this measure finalizes. Thanks for stopping by. Please e-mail me at marti@MartiHampton.com with any questions about real estate.
WASHINGTON (Reuters) - Top Democrats in the Senate have reached an agreement to extend the soon-to-expire $8,000 tax credit for first-time homebuyers, Senate Banking Committee Chairman Christopher Dodd said on Tuesday.
"We have that. Done," Dodd told reporters. He declined to specify the details of the agreement.
But a Republican who has worked with Dodd cautioned that they were still negotiating on the measure, which could come up for a vote on Tuesday evening as part of a package that would extend unemployment benefits.
"We're close, we're close but I can't get into any details until it's a done deal," said Republican Senator Johnny Isakson.
The popular tax credit, which has helped lift the housing market out of its worst slump since the Great Depression, is set to expire on November 30.
Dodd and Isakson want to extend the credit through June of next year and broaden it to anyone buying a primary residence, not just first-time buyers.
Senate Majority Leader Harry Reid had backed a narrower version which would extend the full credit through March and gradually phase it out through the end of 2010.
Dodd said that the deal would merge the two proposals.
We are sitting on the edge of our seat waiting and watching until this measure finalizes. Thanks for stopping by. Please e-mail me at marti@MartiHampton.com with any questions about real estate.
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