Extended Tax Credit info

Mortgage Market News – Important Update!!!

The Senate has voted last night (11/4) to extend and expand a popular tax credit for homebuyers that was scheduled to expire Nov. 30. Also, the House is expected to schedule a quick vote on the bill as early as today 11/5 as part of a package that also extends unemployment benefits for people out of work more than a year. The White House indicated that the President will sign the legislation.
How the homebuyer tax credit would work:
Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers who purchase between December 1, 2009 and May 1, 2010. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.
Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.
Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.
Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.
New anti-fraud limitations imposed.
Cost: $10.8 billion.
Source: Bloomberg Press and Associated Press and confirmed information with the content of the Senate bill
*(below is the article, from this morning)

Senate Approves Homebuyer Tax Credit Extension
Nov. 4, 2009 (Bloomberg)

The U.S. Senate approved a $45 billion plan to expand a tax credit for first-time homebuyers, extend jobless benefits and provide tax refunds to money-losing companies. Lawmakers voted 98-0 for the measure.

The plan would be the first major extension of provisions in February’s economic stimulus plan. The $8,000 homebuyers’ tax credit, slated to expire this month, would continue until April 30 and be expanded to include people with higher incomes and some who already own homes. That would cost about $10 billion in the fiscal year that began Oct. 1, according to Congress’s Joint Committee on Taxation.

The Senate plan would allow homebuyers who have lived in their residence at least five years to receive a $6,500 credit. Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify. That is up from the current $75,000 limit for individuals and $150,000 for couples.

Those buying homes worth more than $800,000 wouldn’t be eligible for the credit. Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.

The credit “really does provide some economic lift in the country at a time when we desperately need economic lift,” said Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat.

He said expanding the credit to those who already own homes would help create jobs because “the move-up buyer is more inclined and capable of buying that furniture, maybe building a porch, putting a garage on, a new roof” and making the “kinds of investments I think is going to be a job-creator across the country.”

*For the full article, click here.

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Mortgage Rates This Week – Relatively Unchanged
NATIONAL RATE SURVEY RESULTS
Nov. 4, 2009 (Bankrate.com) 30-year Conv: 5.35% -- w/ avg. points: 0.31 pts 15-year Conv: 4.72% -- w/ avg. points: 0.31 pts 30-year FHA: 5.29% -- w/ avg. points: 0.16 pts 5-year ARM: 4.64% -- w/ avg. points: 0.31 pts


Matthew Hibler
Coldwell Banker Home Loans
Senior Mortgage Advisor
o) 303-409-6176
c) 303-916-1666
f) 303-409-6113
http://matthewhibler.coldwellbankerhomeloans.com

For a same day loan decision, please call toll-free 877-233-8652. Loan Consultants available Monday through Saturday! Coldwell Banker Home Loans is a residential mortgage company dedicated to making home-buying easy.