First Time Home Buyer Tax Credit Extension – Will Obama Expand Again in 2010?
Posted on | March 1, 2010 | 5 Comments
In November of 2009, President Obama and his start decided to extend the original first time home buyer tax credit. The first time home buyer tax credit was not only extended but it was expanded as well. The bill added the move up buyers tax credit of $6500 along with the first time buyers tax credit of $8000.
There are only two more months available in 2010 to take advantage of this tax credit. There has been much news about home prices falling and new home sales now at all time lows so one must wonder if President Obama and his staff are going to extend and expand the first time home buyer tax credit again.
We are going to start to hear a great deal about the extension over the next few weeks as the political staff will want to get this deal done before the tax credit expires of April 30th, 2010. If you have been thinking about buying a new home now is one of the best times to take action so you don’t miss out.
At the present time mortgage rates are very close to all time lows at 4.75% for the 30 year fixed mortgage rate. It is also the case that home prices are very low as the economy continues to suffer. WIth an $8000 tax credit available now is a great time to consider your first home.
Author: Mike Garner
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5 Responses to “First Time Home Buyer Tax Credit Extension – Will Obama Expand Again in 2010?”
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March 1st, 2010 @ 5:04 pm
Mike, are you serious? Are you getting paid by the NAR or something? If now was such a good time to buy, why does the government have to step in with this credit in the first place? Low interest rates is a BAD thing, Mike, not a good thing when buying a home. Think about this scenario. You buy a $400,000 home at 4.75%. As you said yourself, this is an all time low for interest rates. What is going to happen in the future? Will you be able to refinance? Heck no! The best time to buy is when prices are low and interest rates are high. Then you will be able to refinance when rates drop down again. The banks are desperate for our money. I don’t see any good reason to give it to them, do you?
March 2nd, 2010 @ 2:15 am
Maybe it’s time to take the next level Econ, 101.
Low interest rates means a lower price for the money you need to purchase a home, which is the entire point of refinancing in the first place. Plus, God forbid people actually put some money into their homes instead of playing Wall St with their residences!
How about this, America- you can refinance when you have some actual equity EARNED on your property.
And Econ101? Class dismissed.
March 6th, 2010 @ 6:10 am
I’ve got a new house that’s currently being built. There are some changes that I’d like to make, but the builder says that would put the completion date past June 30th, when the $8,000 credit deadline hits. If I only knew that Obama was extending the deadline, I’d go ahead and have the builder make the changes (i.e., more money for the builder).
March 22nd, 2010 @ 7:07 pm
The first comment is mind boggling. Buy when interest rates are high so you can refinance later when they drop? You would advocate paying more than necessary so you can get a lower rate down the line? Why not get the lower rate from the start and then sit pretty as the rates begin to rise?
March 27th, 2010 @ 10:19 pm
Econ101 is a moron. Buy when interest rate is high? Are you nuts?
You buy a house when:
1) You can afford it regardless how the economy goes.
2) When housing prices are low. Buying when it is low, regardless of interest rate, means you have a lower loan, and therefore even if interest rates go up or down, you will not be under water. If rates go even lower (not sure how much lower it will go), you can refinance. If it goes up, you can be rest assured that you purchased at a low point.
If you buy a house when prices are high and interest rates are low, you’re in deep $hit since you owe so much more on the loan amount.