Prior to the November 30, 2009 deadline, Congress not only extended the $8,000 first-time home buyer tax credit to June 30, 2010 – with a signed purchase agreement dated no later than April 30, 2010 – but they also implemented a new $6,500 move-up home buyer tax credit. However, it has been some time since I’ve read anything about either of the tax credits. It seems as if the enthusiasm and zeal for the programs have been lost, despite current mortgage rates remaining historically low for an unprecedented period of time.
The vast majority of homeowners who are eligible to refinance their existing mortgage loans are either currently in the process now, or have already done so. Nevertheless, there are still many homeowners who can benefit from refinancing by taking advantage of today’s incredibly low current mortgage rates. In addition, it has been said time and time again that now is the time to buy a home if you’ve been considering homeownership. “The time is now” adage really can’t be overstated at this point as the clock ticks toward the expiration of the tax credits.
Furthermore, analysts are predicting that current mortgage rates will spike to 6 percent even before the tax credits expire as the Federal Reserve completes its commitment to purchase $1.25 trillion in mortgage-backed securities by March 31, 2010. That’s three full months before the expiration of the tax credits. The tax credits will be of little benefit if rates increase that sharply. Therefore, locking in now will allow you to take advantage of both low current mortgage rates in addition to unparalleled tax credit opportunities.
For answers to your tax credit questions, click here or call 877-868-2503 and speak to a licensed mortgage professional.
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