Current Mortgage Rates May Be More Enticing To First Time Homebuyers Until End Of 2009

Posted by  on Sep 04, 2009

Lowest Mortgages Rates Seen Since Recent Increases

Borrowers who missed out on mid 4% mortgage rates may be relieved to find current mortgage rates slowly creeping back down. Most recently, some mortgage lenders even began offering rates at 4.875% this week, while most other lenders priced 30 year fixed rate loans right around 5%. And according to the latest Mortgage Bankers Association application index, purchase and refinance applications saw recent increases in activity--purchase applications showed a modest 1.3% increase, while refinance activity jumped almost 4%.

Even if lower mortgage rates aren't convincing enough to some buyers, the IRS recently reminded potential buyers of it's many tax benefits included in the recent American Recovery and Reinvestment Act, the most relevant issue being the newly revised genuine tax credit for first time home buyers worth up to $8000.

First Time Home Buyer Credit Expires December 1st 2009

It's not clear whether this tax credit might be extended, or updated, like the previous one, but the current deadline is still set for December 1st 2009. Remember, in order to be eligible, buyers must close on their new home by that date. Typically, the mortgage process can take about a month on it's own, so first time buyers may want schedule more time to ease any pressures.

Although the summer is still in season, the December deadline is actually closer than some might assume. Between finding the perfect home and securing your first mortgage, some borrowers may need a head start to compare several mortgage brokers, or lenders, before even looking at homes just yet. Even with the best mortgage rates and a $8000 tax credit, you'll still need to crunch the numbers beforehand to figure out how much mortgage you can actually afford. Finding your dream home might be the ultimate goal, but past experiences should remind you that the wrong mortgage can quickly turn into a nightmare in just a short time.


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