02/23/2010 • 1:34 pm 0
The article “Yes, you can buy a home” published in the Sunday Boston Globe’s February 21st. edition talks about that although credit is still tight there are six ways to uncover a great mortgage and otherwise make a purchase possible.
Posted by Winnie Henchey – Marketing Director
Jebb & Driggin is an Exclusive Buyer’s Agency
Filed under: Boston Real Estate News, Financing, Homebuyer Market in Boston, Mortgages, Real Estate News
02/03/2010 • 5:42 pm 0
As many of you are aware the First Time Home Buyer Tax Credit was extended. What you may not know are the details of the EXPANSION.
As part of the stimulus plan Congress has passed new legislation that: Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.
WHO QUALIFIES?
Current homeowners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
WHICH PROPERTIES ARE ELIGIBLE?
The extended Home Buyer Tax Credit may be applied to primary residences, including, single-family homes, condos, town homes, and co-ops.
HOW MUCH IS AVAILABLE?
The maximum credit allowed for current homeowners is $6,500.
HOW IS A BUYER’S CREDIT AMOUNT DETERMINED?
Each home buyer’s tax credit is determined by two additional factors:
Price: The credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income: Single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credits Limits.
IF THE BUYER(s)’ INCOME EXCEEDS THESE LIMITS, CAN HE/SHE STILL RECEIVE A CREDIT?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income are not eligible for the credit.
CAN A BUYER STILL QUALIFY IF HE/SHE CLOSES AFTER APRIL 30, 2010?
As long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until July 1, 2010 to close.*
WILL THE TAX CREDIT NEED TO BE REPAID?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three year period, the full amount credit will be recouped on the sale.
*Military and Foreign Service employees have an additional year to purchase a principal residence in the United States.
If you purchased a home between January 1, 2009 and November 6, 2009, or have questions, please see Federal Housing Tax Credit
We hope you found this information helpful. If you have any questions please contact us at either number below or via email.
Posted by Leslie Cotty
Filed under: Financing, Home Buyer Advice, National Real Estate News, Financing, Home Buyer Advice, Move-up/Repeat Home Buyer Tax Credit
02/01/2010 • 1:54 pm 0
Filed under: Boston Real Estate News, Financing, Home Buyer Advice, Real Estate News
12/04/2009 • 8:56 am 0
The MSNBC website just released an article noting two interesting things about mortgage rates:
First, they just dropped to a record low of 4.71% for a 30 year term, according to a survey released today by Freddie Mac.
Second, at least according to the chief economist at LendingTree.com, those rates will be sharply higher next year. That economist predicts mortgage rates would increase to 5.64%, still low by historical standards, but almost 1% higher than now.
What this means for you, is that waiting may not be a good game. Even if prices drop further, the savings would be mostly eroded by the increased mortgage rate.
Attached is a spread sheet which shows two examples of waiting on the purchase of a $400,000 house or condo, with a mortgage at 10% down, 30 years, and at the current and next year rates reflected in the article.
| Now | Example 1 | Example 2 | |
|---|---|---|---|
| (5% less) | (same price) | ||
|
Price |
$400,000 | $380,000 | $400,000 |
| Down Payment 10% |
$40,000 | $38,000 | $40,000 |
| Mortgage Principal | $360,000 | $342,000 | $360,000 |
|
Interest Rate |
4.71% | 5.64% | 5.64% |
| Mortgage Payment (30 year term) |
$1,869 | $1,971 | $2,075 |
| Mortgage Principal in 5 Years |
$329,200 | $316,793 | $333,470 |
| Mortgage Payments lower or higher over 5 years |
-$6,120 | $12,360 | |
|
Down Payment Savings |
$2,000 | $0 | |
| Mortgage Principal lower or higher over 5 years |
$12,407 | $4,270 | |
| Total Savings or (Loss) from Waiting |
$8,287 | -$16,630 |
Example one, shows a 5% drop in price, but a higher mortgage payment per month of about $100. While the mortgage principal would be lower by about $12,000 in five years, because of the lower price, offset by higher monthly costs, the total benefit of waiting would be about $8,000.
Example two, shows prices not dropping, but mortgage rates still increasing. In that situation, waiting costs about $16,000 over 5 years, with mortgage payments being about $200 more per month.
| For more information about how current economic conditions may affect your home purchase, contact a Jebb & Driggin Exclusive Buyer’s Agent or log-on to our site and begin your home search. |
These descriptions are for general information only and are not meant as tax or legal advice for any specific individual. Please consult your own attorney or tax advisor for information relating to your circumstances.
Filed under: Financing, Freddie Mac, Interest Rates, Mortgage Rates, Real Estate Search
12/03/2009 • 3:36 pm 0
According to an article in this morning’s Boston Globe, the Federal Reserve has just released their most recent survey on the nation’s economic activity, which notes that most businesses surveyed expect a recovery in the New England economy next year.
The article also notes that homes sales continue to rise across New England, boosted by home buyers taking advantage of the $8,000 first-time home buyer tax credit. While prices continued to drop in most local markets, the September median price for Boston was up 6 percent from a year earlier.
If the region’s economy does improve next year, it is my bet that home prices and mortgage interest rates will rise. Based upon a combination of lower or stable prices and historically low mortgage rates, homes are as affordable now as they are likely to be for some time.
Filed under: Boston Real Estate News, Financing, National Real Estate News, Boston Home Prices, Boston Real Estate, First Time Home Buyer Tax Credit, Home Buyer Advice, Mortgage Rates, Real Estate Search
Jebb & Driggin Realty, Inc. was established for the sole purpose of providing Buyers with real estate specialists dedicated to serving their best interests.
Our company was founded on the common sense premise that “No one can serve two masters.” We do not take listings; therefore, we never represent sellers in a real estate transaction. By only representing Buyers, we eliminate any inherent conflict of interest.
The key advantages of our service are:
• Full Market Access: We provide access to the entire marketplace including property for sale by owners.
• Save You Time: We listen to our clients. We only show properties we believe meet our clients’ criteria.
• Best Price, Best Terms: Having found the best property, we provide a complete analysis of the property, including market value, and help to negotiate the best available terms.
• Full-Service Brokerage: We cover all matters leading up to the closing date and beyond. We provide referrals for appraisers, inspectors, lenders and legal services. We stay in touch with our clients and continue to offer any skilled or professional referrals they need down the line.
• No Contracts: Our philosophy is simple. If we perform well for the Buyer, we feel the Buyer will be loyal to us. If we do not perform up to expectations, a contract is not worth much anyway.
As Exclusive Buyer’s Agents, we are more than facilitators; we are advocates for our clients. We carefully consult with our clients, honor their wishes, and negotiate on their behalf, all the while protecting their interests. We are dedicated to helping our clients find and purchase the home they want.
There is no additional cost for our services. In Massachusetts it is common practice for the Seller to pay brokerage fees that are, in turn, split between the Selling and Buying agencies. If this arrangement is not acceptable to our clients, we can negotiate a separate contract regarding our fees.
Jebb & Driggin Realty, Inc.
William T. Jebb
Leslie A. Cotty
Ryan F. Moore
Matthew S. Kane
Seth J. Driggin
Grace Lee Billings
Winnie Henchey
