Sonoma County Home Mortgage Rates – October 30, 2009
October 30th, 2009 categories: Mortgage Rates
Sonoma County Home Mortgage Rates - October 30, 2009
Homebuyer tax credit extension and expansion to include current home owners too!
Status on extension:
Many people have been saying the will extend the Homebuyer Tax Credit beyond its November 30th deadline. But, it has not been finalized yet! The Senate has passed the legislation and now it goes to the House for their vote, probably next week.
If passed, this legislation would extend the Tax Credit until 2010. The deadline is that all contracts must be entered in to by April 30, 2010 and closed before July 1, 2010. It would also increase the income limits for the program to $225,000 for a couple and $125,000 for an individual. This is up from $150,000 for a couple and $75,000 for an individual.
The First Time Buyer Tax Credit allows a buyer who qualifies to receive a tax credit of $8,000 if they buy a personal residence. The legislation was enacted back in February of 2009 and has been a motivating factor in giving buyers of homes another reason to take advantage of this incredible opportunity to buy a home at rolled back, some say bargain, prices.
Congress is eager to pass the legislation because of concerns that the housing market might slow more and cause values to worsen. The First Time Homebuyer Credit has been the catalyst for improved sales over the last few months. In fact most believe it has buoyed the housing market. The housing market has stabilized in many markets in recent months and this Tax credit has been a large part of that stabilization.
About 1.4 Million first Time buyers have qualified for the credit through August The NAR (National Association of Realtors) believes that 350,000 of the people who bought homes did it for this reason.
Expansion to include current homeowners!
Until now, those who were selling a home and buying another were not eligible for a tax credit. Congress decided to expand the new legislation to include current home owners who qualify too!
The new legislation has good news for current homeowners. The Bill, in its current form, would allow people who have lived in their homes for at least five years to receive a credit of $6,500 when they buy another home to live in (Owner-occupied) according to the Senate Finance Committee chairman Max Baucus. The same income limits as stated above would apply.
Rates remained low this week! We are still in historic lows, but they will go up eventually so act soon and you’ll have something to brag about the rest of your life!
$8,000 Countdown continues!
Until the Congress passes the new legislation the countdown on the current Tax Credit Program continues. The tax credit is an unbelievable bonus for buying a home. Imagine, you get a home at approximately half of its previous value, you get great rates on your financing and then you are sent $8,000 after you file your tax credit!
If this legislation is not passed by the House and signed by the President, there are only 31 days left on the current program and then say good bye to $8,000!
The following rates were quoted for a sample conforming loan with the following criteria: $300,000 Loan Amount | 80% LTV (Loan To Value) | 680+ FICO Score
15 Year Fixed Rate Mortgage – 4.875% (5.27% APR)
30 Year Fixed Rate Mortgage – 5.125% (5.345% APR)
1 Year Adjustable Rate Mortgage (1 Year ARM) – 4.50% (3.74% APR)
5/1 Adjustable Rate Mortgage (5/1 ARM) – 4.625% (4.23%APR)
7/1 Adjustable Rate Mortgage (7/1 ARM) – 5.00% (4.63% APR)
Article Contributed by: Dave Raffi, Regional Manager at Mission Hills Mortgage: 707-303-2933
Make sure you tell Dave that the Sonoma County Grapevine sent you!
* DISCLAIMER: These mortgage interest rates are quoted at a specific time, 10.30.2009. Interest rates are subject to change upon changes in market conditions and borrower qualifications.
Now that you are caught up on the latest mortgage rate news, check out the latest prices of Sonoma County Homes by clicking the appropriate link below:
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