It’s official: Effective for all home purchases after November 6, 2009.
President Obama signs into law H.R 3548: The extension and expansion of the home buyer tax credit.
Friday November 6, 2009 , as current mortgage rates still kept up their momentum of the current week of sliding lower, President Obama officially signed the HR 3548 bill after the Senate passed it unanimously on Wednesday and the House of Representatives voted to approve it by a 403-12 margin on Thursday.
In case you haven’t heard the home buyer tax credit has been extended and expanded to include:
1. Extension of the current $8,000.00 tax credit for first-time home buyers with a signed purchase contract by April 30, 2010 and closed by June 30, 2010
2. Raising the income limits for singles to $125,000 and for married filing jointly to $225,000.
3. Offering a $6,500 credit for current home owners who have owned their current home as a principle residence far any consecutive five-year period out of the last eight years.
4. Limiting the purchase price of the home at $800,000.
5. Members of the military, military intelligence, and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.
The expansion of this credit for current home owners and/or people making up to 125k for single taxpayer and 225k for married filing jointly is effective and shall apply to residences purchased after the date of the enactment of this Act or in others words after November 6, 2009.
It is not often in life we find ourselves afforded with a 2nd chance opportunity , considering the massive costs involved with this legislation, this is the last chance to take advantage of this tax credit if you do so qualify. The Senate, The House of Representatives nor the President of The United States of America will not allow any further extensions to this program once it expires in after April 30, 2010.
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Linda Ferndale
November 13, 2009 @ 9:47 am
Rates are low and do seem to keep dropping. But I’m a bit of a nervous Nellie and I’m afraid they’ll jump up as soon as I look away. What my lender did for me was lock in my rate with the understanding that if rates drop before I close I can take advantage of the lower rate. I would tell everyone to check with your lender and see if they can do that. I use a direct lender, Intercontinental Capital Group, in Boston. I think you may only be able to do that with a direct lender, not a broker.
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George
November 13, 2009 @ 9:49 am
I didn’t know banks could do that. i thought a lock-in was a lock-in and that’s that. I know Bank of America would never do that for me, but I’ll ask my current lender.
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George
November 28, 2009 @ 10:58 am
Well I called up my mortgage broker and they said I would have had to tell them at the time I was quoted that I wanted the option to re-adjust. It’s kind of a shame because rates have dropped a bunch and I’d like to be able to take advantage of it.
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Linda Ferndale
December 5, 2009 @ 10:49 pm
What’s your rate like? Have rates dropped significantly since you locked in? Each point is 1% of the loan amount…so do the math. I’d say if they’ve gone down 2-3/10ths of a point it’s worth going to a different bank and getting a new quote. They were very flexible, that’s part of why I decided to finance with them. It’s a volatile market, and they were willing to help me take advantage of that.
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George
December 18, 2009 @ 8:37 am
Well, I did the math like you said and found out I could save almost $50 a month if I took their rate. So I paid a fee to break the agreement with my broker but I figure it’s worth it to be saving $50 a month over 30 years!
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Larry
December 22, 2009 @ 9:56 pm
My wife and I want to move down to Florida sometime in the coming year. Do you think we’re better off buying in the winter (usually better deal, but it’s their peak season) or the summer?
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