Senate OKs $15,000 credit for home buyers
February 5, 2009
Post Tags: $15000 tax credit for home buyers , Economic Stimulus bill , First-Time-Home-Buyers
Stimulating The Real Estate Market
This has been one of the biggest issues in trying to jump start the economy and get it back on the road to recovery. There have been a couple of programs already started. The $7,500 tax credit to first time home buyers which would have to be paid back over a period of years. This is now being looked at in the stimulus bill. It could come out as a permanent tax credit that would not have to be paid back.
There is also news that the House is moving to redo the rescue plan for homeowners.
House moves to redo rescue plan for homeowners
“WASHINGTON — With fewer than 500 applications and only two dozen homeowners helped so far, House lawmakers moved Wednesday to revamp a new program that was intended to help hundreds of thousands of borrowers avoid losing their homes.”
This does appear to need revamping. With millions of homeowners needing mortgage assistance to keep from going into foreclosure a government program so complicated or misunderstood that only 500 applications have been received needs revamping. Not only that, but only 24 of those 500 applicant have received help so far. This needs to be revamped.
Senate OKs $15,000 credit for home buyers
“WASHINGTON — The Senate voted Wednesday night to give a tax break of up to $15,000 to home buyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama’s recovery plan. The tax break was adopted without dissent.”
This doesn’t mean it is a “Done Deal” It does mean it is in the Senate version of the stimulus bill.
As I understand the provision; the up to $15,000 tax break would be available for “One Year“. It would be 10% of the purchase price up to $15,000. Meaning if you purchased a home worth $150,000 you get the whole $15,000 tax break. If you purchase a $300,000 home you still get the $15,000 tax break.
It has passed the Senate. It still has to go through the House and be signed by the President.
30 Year Fixed Interest Rate of 4% being proposed
There is a move going on in Washington right now to put into place a 30 year fixed interst rate of 4%. In the past three weeks we have seen 30 year fixed rates climb from 4.96% to 5.25% being quoted today.
In recent weeks surveys asking what it would take to get some buyers off the fence and into the market has indicated a move in that direction for the interest rate will be required for them to make the move.
What Does All This Mean
I stress again, none of these proposals are “Done Deals” there is a long way to go for each. Yet what possibilities are opened up for buyers and sellers if some of these proposals make it into law and the stimulus package?
Reading and hearing about all these proposals have got me thinking about the possibilities for selling and buying another home.
Is your home to put on the market if an opportunity presents itself. Have you kept the routine maintenance up or have you let it slip thinking you can save a little money and put off repairs since you aren’t planning on selling any time soon. We will look at this topic tomorrow.
