Did you miss the June 30th Tax Credit Deadline?  Think Again!!

Home Buyers Who Missed 8,000 Dollar Tax Credit Coming Out Ahead By Jim Weiker

RISMEDIA, June 29, 2010—(MCT)—Home shoppers who missed the April 30 deadline for a housing tax credit might have the last laugh. For a variety of reasons, they could end up saving more than the $8,000 they could have received from the tax refund.

 

In some neighborhoods and price ranges, sellers are dropping their prices because buyers are harder to find now that the credit has expired. Builders and real estate companies began offering promotions after the tax credit ended that, in many cases, are worth more than the credit.

 

Interest rates have dropped enough since the credit deadline that, over the life of a loan, a homeowner could easily save more than the value of the credit. Some folks possibly could have benefited from waiting until after the tax credit, it would depend on the price point they were buying in and the market they were looking in.

 

Home sales leapt in March and April during the waning weeks of the credit, especially for homes priced at less than $200,000, which appealed to first-time home buyers. Since the credit expired, home contracts and building permits have tapered off, leaving sellers with fewer buyers and, in some cases, little choice but to cut their price.

 

 Those shopping for new homes are finding a different kind of bargain as some builders roll out incentives to keep traffic moving.

 

Builders are offering free appliances, trade-in programs, rebates and “sweat-equity” discounts that allow a homeowner to drop the price by painting, landscaping or otherwise helping to finish their home.

 

Finally, interest rates have dropped nearly half a point since the end of April, saving buyers thousands of dollars over the life of a loan. Buyers of a $180,000 home who borrowed $173,700 in mid-April at an interest rate of 5.125% would have paid $377,442 over the next 30 years—$15,000 more than they would pay if they borrowed last week at an interest rate of 4.75%.

 

The good news – The Senate passed the House Bill to extend the homebuyer tax credit for those who were under contract by 4/30. The President is expected to sign the bill today and make it law. It is unclear, however, whether or not the law will apply to loans that close after 6/30 and before the extension is officially law. For more info, please click here:  http://www.housingwire.com/2010/06/30/senate-passes-homebuyer-tax-credit-extension

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