Best time to buy since 1970
Did you know women could not get a mortgage on their own in 1970, even
if they had a great job? That's right. They had to get a co-signer if
they want to buy on their own. We've come a long way, baby! And now is
the best time that there has ever been since 1970 to purchase a home.
Index,” which shows homes are more affordable today than they have
ever been since 1970. There are 3 components to the “Affordability Index.”
1. Median Income
2. Interest Rates
3. Price of Homes The prices of homes are down and interest rates are very close to
there all time lows. Some people say we are at the bottom of the
housing market and we are turning upward. Values will start increasing
and so will interest rates. The recession has created a perfect storm
for renters to purchase home. We are back to the basics with home
appreciation. From the end of World War II to 2000 homes appreciated
3-5% per year. The icing on the cake is that government is giving First time buyers
(anyone who has not owned a primary residence in the past 3 years and
1 day) up to an $8000 Home buyer credit. This is a “refund.” If you
purchase a primary residence for $80,000 or more you will receive up
to $8000. If the home costs less then you will receive 10% of the
purchase price ($75,000 x 10% = $7500). For example, if you owe the IRS $500 when you complete your annual
income taxes then the IRS will send you $7500 back ($8000 - $500). If
you are owed $1000 from the IRS, then they will mail you a refund for
$9000 ($1000 + $8000). You need to agree to live in the house as your
primary residence for 3 years and 1 days after you close, Or you will
have to pay back the entire $8000 when you sell your home. The government will be terminating the $8,000 Home Buyer Tax Credit
early in 2010. You must either close or be under contract no later
than April 30th, 2010. Then you must close on or before July 1st, 2010
to obtain the Home Buyer credit. Remember, you can write off mortgage interest, property taxes and PMI
on your income tax forms. You can not write off rent. It is far better
to own than rent. For a “Rent vs Own” comparison chart that showing
you the benefits of buying a home email Stan Reinford at Bank of
America Home Loans: sreinford@rcn.com. http://www.SmartGirlsOwn.com
