This Video explores just how much money you spend when mortgage interest rates change by 1%, how that compares to the tax credits, and why the average buyer may be more tempted by tax credits.
One of the biggest complaints against the Home Buyer Tax Credits that we just saw Congress extend through September 30th, 2010 was that it was artificially propping up the Housing Market. Buyers were flooding the streets to purchase real estate and take advantage of the First Time Home Buyer Tax Credit (up to $8000) and the Move Up/Repeat Home Buyer Tax Credit (up to $6500). In the vast majority of cases, the buyers will not get the full $8000 or $6500 tax credit. It’s a percentage of the purchase price up to those amounts.
Now that the deadline to qualify, April 30th, has passed, things have slowed down. But if $8000 and $6500 tax credits stimulated so much interest, why aren’t the streets flooded with Buyers taking advantage of record low mortgage interest rates?
All information regarding mortgage interest numbers is from BankRate.com as of 7/7/2010.
We want to hear your opinion… what do you think the reason the tax credits attracted so much more attention than low interest rates? What are your experiences with low interest rates and interest payments? Please leave a comment below and let us know!
Subscribe to this Blog
{ 1 comment }
I think the combination of such low interest rates and government tax credits makes this the best time to buy in years. I am currently trying to sell my home so I can get a place in Fountain Hills and take advantage of this buyers market. Thanks for the link to bankrate.com. Thats a cool website I will have to check out more.
Comments on this entry are closed.