Fixed Mortgage Rates Are Too Attractive to Ignore

Mortgage rates have hit their lowest point in almost 50 years. The truth is, some people have owned their homes for so long, they can't tell you what interest rate they are paying on their loans without looking it up.

Those who bought a home a few years ago likely locked in a rate much higher than what is available today. There are still people paying hundreds more each month than they need to because they have not bothered to refinance. And, of course there are still folks who have adjustable rate loans.

In California, a drop in rates can lower a homeowners monthly mortgage payment by a few hundred dollars, depending on the size of the loan.

Unfortunately, gone are the days where prospective homeowners could show up without a single document verifying their income. Without question, the loan qualifying process has tightened up, but some loan professionals have the ability to assist consumers streamline the process. Tom Crate and Marty Sievers with Mountain West Financial have the expertise, tools and relationships that can assist you in getting the very best rate with the least amount of hassle.  Call them you won't be disappointed.

Contact the experts at Mountain West Financial to see how you can take advantage of these low rates.

(909) 336-1793 ask for Tom or Marty

 

 


Provided to you Exclusively
by
Thomas Crate

 

 

 

Thomas Crate
Mortgage Broker 
Mountain West Financial Inc 
Office: 909-336-7892
Cell: 909-744-0455
E-Mail: Thomas.crate@mwfinc.com
Website: www.mwfinc.com

 

Thomas Crate

 

 

For the week of March 28, 2010

Only 1 Month Left to Qualify...
Don't Miss Out on the Tax Credit!

Last November, the government expanded and extended the new Homebuyers Tax Credit. According to the program, first-time homebuyers are eligible for a tax credit of 10% of the purchase price of the home, with a maximum credit of $8,000. And some current homeowners looking to purchase a home can receive a credit up to $6,500.

Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit.

That means...you only have one month to get your paperwork going to qualify for this credit before it goes away!

Here is a brief overview of the Homebuyers Tax Credit - and its benefits.

Dollar-for-Dollar Benefit

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction" or reduction in tax liability that would save just $1,000 to $1,500 when all was said and done.

So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Even Better... It's Refundable!

Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability.

For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

What Are the Income Caps?

Single tax filers with earnings of $125,000 or less are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers with earnings of $145,000 and above are ineligible.

Joint filers with earnings of $225,000 or less are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers with earnings of $245,000 and above are ineligible.

What's the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

Remember, the Homebuyer Tax Credit program includes a number of details and qualifications.

Call or email today if you have questions or would like to see if you can benefit from the tax credit...and email this article to anyone you feel it might benefit!



California Extends $10,000 Homebuyer Tax Credit

California Gov. Arnold Schwarzenegger has signed legislation that re-establishes and extends the state's $10,000 tax credit for homebuyers, a program that proved so popular last year that it ran out of money by the end of June, eight months before it was set to expire. The measure sets a $10,000 credit, up to 5% of the purchase price, for buyers of newly built homes and a similar credit for first-time buyers who purchase existing homes. The credit will be available on 'personal residences' purchased between May 1 and Dec. 31, and 'principal residences' acquired between Dec. 31 and Aug. 1, 2011, as long as long as they were purchased pursuant to a contract executed on or before Dec. 31. The $200 million allocated for the program, which is offered in addition to the revised and extended federal tax credit, will be split evenly between new homebuyers and buyers of existing houses. The credit comes with two cave! ats, however: It must be claimed in equal installments over a three-year period, and buyers must live in the homes they buy for two years or forfeit the benefit. Despite the restrictions, both builders and Realtors hailed the measure. 'The tax credit will help push prospective buyers off the fence, clear out inventory, and jump start the home building industry, which will help create jobs and reinvigorate the state's economy,' said Liz Snow, president of the California Building Industry Association. Nearly 40% of first-timers said they wouldn't have purchased a home if the federal credit to buyers was not offered, according to CAR research conducted last year.

 


For the week of January 25, 2010

 

Recent guidelines from Washington have forced a change to the way that loan originators will disclose closing costs for all homebuyers. The purpose of the new Good Faith Estimate is to level the playing field for borrowers comparing loans to be able to make apples to apples comparisons for loan scenarios.

In essence, HUD is working to bring all lenders up to the same standard of excellence in reporting closing costs that I have always adhered to, estimating realistic fees that a buyer should expect to pay at closing with no last minute surprises.

What are the important facts you should be aware of? Below are some important points to know:

  1. All fees paid to the lender/broker are to be consolidated in one line, including processing fees, origination fees, etc. These charges cannot change from the original estimate without a material change to the loan requested.
  2. In the event fees are being charged to obtain a lower rate, these are to be broken out and itemized for the borrower's ease of comparison to other loan programs.
  3. Estimates for fees from government recording charges and third party settlement providers we suggest are to be itemized and the lender is held to a tolerance of 10% for their accuracy. In the event the estimated charges exceed the amount listed by the allowable tolerance, the lender will be responsible for making up the difference.
  4. Estimates for services that the buyer can shop for and do choose can change at settlement without the lender being held accountable. This can include title charges, homeowner's insurance, and initial deposits for an escrow account.

As always, I will strive to provide you with an accurate estimate of closing costs and funds to close.  

Special Homebuyer Opportunities for the Next Few Months

For the prospective homebuyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts for two reasons.

First, huge tax incentives are about to expire. April 20, 2010 is the last day to enter into a home purchase contract and still potentially qualify for a federal income tax credit of up to $8,000 for first-time homebuyers and up to $6,500 for repeat homebuyers. The credit can be claimed only on contracts that close by June 30, 2010.

Secondly, another form of stimulus will soon conclude, as the Federal Reserve winds down a program that has been keeping home loan rates low. the fact is that the lowest rates of 2009 were driven down to their attractive levels because of the Fed's Mortgage Backed Securities (MBS) purchase program. The Fed has already used over 85% of the allocated funds for the MBS, meaning less than 15% remains to be used over three months.

As the Fed's program winds down and ends, we'll likely see two things happen. First, we will probably see higher levels of volatility - with rates sometimes shifting dramatically in the middle of the day. Second, since MBS will have less support from the Fed, rates are likely to rise over time.