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First Time Home Buyer Tax Credit Extension – $6500 Move-Up Buyers Helping?

Posted on | November 19, 2009 | 2 Comments

The first time home buyer tax credit extension is expected to greatly help the housing market.  Not only are first time home buyers receiving a check for $8000 move-up buyers are receiving a check for $6500.  If you have lived in your current residence for five years or more and you are “moving-up” into a new home you have the opportunity to qualify for a $6500 tax credit if you close before April 30th, 2010.  This is expected to but a jolt in the housing market but we have yet to see it take effect in the data.
 
Earlier this week we learned that mortgage applications fell by 11.7% during the week ending November 6th, 2009.  This data is from a period in which home owners were still waiting to see if the first time home buyer tax credit was going to be extended.  There is little doubt that this is a strong reason we saw a drop in mortgage applications over this period of time.  The new data is likely to show a slight increase and as the month moves forward hopefully we will see mortgage applications rise.
 
With mortgage interest rates very close to all time lows now is a great time to lock in to a low mortgage rate on a first time house purchase or a move up purchase.  Not only can you lock in to a mortgage rate well under 5% but you will also receive a tax credit.  This is basically free money to put in your pocket so do not let this opportunity pass you by.  Make sure to research which lender will work best for you but it should not be a problem finding a mortgage lender offering low mortgage interest rates.

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Author: Alan Lake

Category: Current News

Comments

2 Responses to “First Time Home Buyer Tax Credit Extension – $6500 Move-Up Buyers Helping?”

  1. Mike G
    November 19th, 2009 @ 10:31 am

    I confused by the editorial position of this site. On one hand you open advocate and campaign for more government programs like the tax credit, and spew the NAR party line about now being a great time to buy (Isn’t is ALWAYS a great time to buy according to the NAR?).

    On the other hand you post about Peter Schiff, Jim Rogers, and Ron Paul who are (at least 2 out of 3) completely against these programs. And mostly acknowledge that homes are still overvalued.

  2. Jim
    November 20th, 2009 @ 5:47 am

    Your article mentions “moving-up”. There is nothing in the law that says that. You could be “moving-down” and qualify for the credit.

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