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Low Mortgage Rates Make First-Time Homebuyer Tax Credit More
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With mortgage rates being kept low many homebuyers are using the first-time homebuyer tax credit along with these low interest rates to get a mortgage on a home. This has promoted more people to enter the housing market when they otherwise may have shied away.
Homebuyers are finding that the incentive to get a home is higher when there is the tax credit involved. Many people worry about things like closing costs with a home, but they are secure in the first-time homebuyer tax credit for costs they may incur while buying. So, one thing left that may dissuade people from buying a home is the cost of the mortgage.
However, mortgage rates have been very low as of late, in some cases 4.75%, and homebuyers are finding owning a home to be a more realistic option. Even if a new homebuyer doesn't qualify for a rate as low as 4.75%, they still are getting rates around 5% for the most part.
If you are looking into buying a new home and want to use the first-time homebuyer tax credit keep in mind that you must be under contract on a home by April 30th and have closed by June 30th to qualify.
Buying a home is a big responsibility and although low interest rates and the first-time home buyer tax credit make purchasing a home appealing, be sure you are in the financial position to buy a home before proceeding.
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Posted By - Featured Agent - 03/10/2010
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