March 29th, 2010
Posted by tacomamilitaryundressed
We are finding many people are unaware that the $8,000.00 credit under the Homebuyer’s Assistance Act was extended and an additional year added for military service members, foreign service employees and people in the intelligence community. The reason behind the law is that people serving abroad will not necessarily have an opportunity to search for a house in a timely manner and should not be denied credit due to their service to the nation.
Such qualifying individuals have until April 30, 2011 to enter into a binding contract and must complete the sale by June 30, 2011. To qualify, one must be in the military, foreign or intelligence services and serve for 90 days outside the U.S. between January 1, 2009 and April 30, 2010. The law extends the benefit to spouses of a qualifying person. The new law also waives the repayment of the credit if the service member sells the house within 3 years due to official extended duty.
This reminder should be of particular interest in Pierce County with the upcoming return of Fort Lewis troops.
This update is brought to you by your friends at
McFerran, Burns & Stovall, P.S.
January 4th, 2010
Posted by tacomamilitaryundressed
Week of
Jan. 03,
2010
Mortgage
Market
Commentary
Last week saw mortgage rates start the week moving upward, but level off as the week progressed.
While we’ve seen rates climbing for four weeks, rates are still at amazing affordable levels, and will
likely remain at low levels in comparison to historical numbers.
While most experts agree that mortgage rates will rise in 2010, the first week of 2010 may not see
much movement until Friday, when December’s employment data is released. It appears that the
economy is at the very early stages of recovery. Two of the biggest keys to returning the economy to
health are housing and employment, with the latter being a huge element in sustaining any level of
health in the housing market. Markets will be watching the nonfarm payrolls number closely. If zero
jobs were lost or if we actually had jobs created in December, mortgage rates will end the week on an
upward trajectory that will very likely extend into next week. However, some predictions call for a
loss closer to 50K, which would help mortgage rates remain relatively flat into next week
December 19th, 2009
Posted by tacomamilitaryundressed
This holiday season should be more about giving than receiving. Too often we get caught up in the decorating, shopping,and festivities of the season without taking the time to consider the world around us. The world around us is filled with need, lonelines, separation from loved ones, and an uncertain future.
Years ago my wife and I decided that we would look around us and help others. We normally chose at least two organizations to donate to other than our church( this year it was the Salvation Army and Toys For Kids: Mary Bridge foundation) . We also adopted several kids from single parent families. At Thanksgiving we included the wife of a deployed soldier to our family dinner. These small gestures of generosity and kindness are painless and help us maintain the the proper mindset of Christmas. Yes, we believe it’s ok to say Christmas, after all He is the “reason for the season”.
Bless each and every one of you and don’t neglect to look around at the world we live in. It’s a lot less frightening and lonely when we care enough to act.
November 16th, 2009
Posted by tacomamilitaryundressed
With limited economic data released last week, mortgage rates continued their recent trend of slowly
moving downward. While we continue to see limited activity outside of conforming and FHA-backed
mortgages, it is worth noting that jumbo mortgages are beginning to reappear more widely in the
market, and the difference between conforming and jumbo rates has been shrinking.
This is a week full of economic data for markets to sort through. With recent signs that the labor
market could be hitting bottom, any signal that indicates that the recovery is beginning to power up
could start pressuring mortgage rates upward. Both Retail Sales and Industrial Production are due this
week. If these two influential reports show greater strength than anticipated, then the likelihood of
increasing rates will grow. However, if they both come in lower than expected, we could see this
trend of very slowly decreasing rates continue. Both the PPI and CPI also are also due this week. If
they are near expectations, they will create some additional downward pull on rates.
November 9th, 2009
Posted by tacomamilitaryundressed
First Time Homebuyer Tax Credit Extended Into 2010!
Plus…A New Tax Credit for Certain Existing Home Owners!
It’s official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.
What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.
What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
October 31st, 2009
Posted by tacomamilitaryundressed
The last several weeks has seen money moved out of bond markets and into stocks and commodities.This seems to paint a picture of economic recovery. Retail Sales decreased about 1.5%, however this is probably due to the end of the Gov’s “cash for clunkers” program. In the past this sort of news would have little effect on mortgage rates, but with the end of some of these Gov. programs intrest rates are going to become more sensitive to these economic factors.
With housing numbers looking better and better ( sales up and inventory stable) combined with other positive economic news rates could nudge up a bit. Now is a great time to investigate the market. Rates continue to hover at 5% and sellers are interested in helping buyer with some closing costs, Call us to set up an appointment or answer any questions.
October 14th, 2009
Posted by tacomamilitaryundressed
According to the J. D. Power and Associates 2009 Home/Buyer Study, Keller Williams Realty, the 3rd largest real estate company in North America, received the highest overall satisfaction ratings from home buyers for the second year in a row The company also ranked second-highest among home sellers in the study.
The study was produced by J. D. Power and Associates to measure home buyers’ and sellers’ customer satisfaction. The results of the home-buying experience were determined by three factors including the agent, office, and additional services.
If you are looking to buy, sell or relocate to either McCord or Ft. Lewis, look no further than the Toscas-Atz/Hushek Group to help you with your real estate needs. Contact us today to set up a personal appointment. Experienced, professional and dedicated to exceeding your expectatons.
September 28th, 2009
Posted by tacomamilitaryundressed
Unless the Fed’s extend the current 1st time home buyers tax credit, time is running out to qualify. The expiration date is Nov. 30th. What this means is a buyers purchase must be closed by Dec. 1st in order to receive the benefit. So here are a couple of tips to follow: 1. Get pre-qualified immediately, as there is little time to waste and no offer can be presented to a seller without a pre-qual letter accompanying it. 2. We suggest avoiding short sales at this time. While there are some great buys via the short sale route, banks typically are slow to respond and could postpone closing past Nov.30th.
Call us to help you investigate the possibilities that exist in your particulaqr case. The market is extemely attractive right now in the 200k to 250k range with lots of inventory to choose from. Also interest rates continue to rest at 30 year lows. Check out some of our past blogs for more info on these topics.
September 7th, 2009
Posted by tacomamilitaryundressed
With all the bad publicity ARM’s have received recently, I thought it might be a good idea to revisit the pro’s and con’s of arm’s vs 30 yr fixed.
Right now adjustables are very smart for certain homeowners or potential buyers.As of the last week of August the going rate for “fixed” was 5.25%, while an ” 5/1 ARM” was 4.125%. On a 200,000 mortgage ,this results in a monthly savings of $134 a month or over $1600 a year and $8000 over the 5 years. So who might benefit from an ARM? A first time buyer who expects to move within 7 years. A buyer who has a history of moving every 10 years or so. Also an existing homeowner who currently has a fixed, but is planning on selling in the next 7 years.
If your considering an ARM or refinancing, contact us for a private consultation. We have great lenders available with great rates.
July 29th, 2009
Posted by tacomamilitaryundressed
Many of the people we talk to tell us they are “waiting for the market to bottom out before jumping in”. This sounds reasonable however these same people didn’t recognize the peak of 2005, so they may likely miss the bottom as well. But let me present another scenario that affects waiting. While prices have continued to decline, interest rates havs risen .5 per cent in the last two months. An example of how this affects “waiters”; A $220,000 home purchased with 10% down @ 5% interest, results in a payment of $1,204. The same home at $210,000 with 5% down @ 5.5% interest, results with same payment and no savings at all. Should interst rates rise by 1% the buyers payment would be $1,260, a $700 annual loss and over $20,000 loss over the term of the loan.
With sellers helping with down payments and an $8,000 tax credit available to some buyers, “why wait?” This is the time to invesigate this opportunistic market. Contact us for a personal consultation.
