Mortgage Rates Fall for Week of August 24
Mortgage rates for FRM loans fell this week, which can help first time buyers take advantage of the federal tax credit program slated to expire on November 30, 2009. If you want to take advantage of the tax credit, you'll need to close on a qualifying home before December 1. For the purpose of the tax credit, a first time buyer is defined as anyone who has not owned a home within the last three years. Here's some basic information about the tax credit:
- Principal residence: The tax credit can only be used for homes used as the taxpayer's principle residence.
- Purchase deadline: Your home purchase must be completed by November 30, 2009. "Completed" is defined as your mortgage loan closing date.
- How it works: Tax credit increases refund or reduces taxpayer's tax bill dollar for dollar.
- Maximum credit: $8000.
- No repayment: The tax credit does not have to be repaid unless the homeowner vacates his or her property during the first three years after purchase.
Please contact your tax advisor for specific information and advice concerning individual circumstances.
Getting the Lowest Mortgage Rates
In addition to incentives provided by the tax credit and current mortgage rates, local programs for first time buyers can help home buyers get low mortgage rates, and may also offer down payment assistance programs. Local real estate professionals and lenders can help connect you with programs in your area.
Understanding how your credit scores can affect mortgage quotes can help you prepare for buying a home. Reducing or eliminating credit card debt and paying all of your bills on time for at least a year before you apply for a mortgage loan can help. Lowering debt and having a clean payment history can help in gaining the best advantage from current mortgage rates.
Our live database of current mortgage rates can help you find the best rates in your area.
