With the tax season in full swing, you will definitely want to discuss with your tax professional the popular $8,000 tax credit for first-time home buyers.  Feel free to share this info with your friends and family as they prepare their 2009 returns.

Originally scheduled to expire on November 30th, 2009, this valuable tax credit was extended into 2010. The new program was also expanded to include a tax credit of up to $6,500 for qualified buyers of a second or “replacement” home under the same deadlines. Most importantly, the new program significantly increases previous income requirements, and, subject to certain criteria, the credit does not have to be repaid.

There are other important guidelines to meet in order to qualify, so be sure to discuss your situation with a tax professional. And don’t forget, you can still buy a home before April 30th and qualify – even you’ve already filed your 2009 taxes – so don’t hesitate to give us a call!

Still have questions about the homebuyer tax credit? The Internal Revenue Service offers this helpful Q & A on the homebuyer tax credit for homes purchased in 2009 or 2010 at  www.irs.gov/newsroom/article/0,,id=206293,00.html

A. Hockman

The cast of the Luau we attended at Kilohana Plantation. Was a beautifully done event and the food was great!

Kauai is where we came on our honeymoon…many, many moons ago. Still honeymooners!

Beautiful scenery from our 2010 trip to Hawaii

The last couple of years have seen some of the lowest interest rates in over 30 years. Many people have taken advantage of this opportunity to purchase homes at great rates, but there are some indications that they may be coming to an end soon. Federal Reserve Chairman Bernake has said the recession is “very likely over”.  So what does all this mean for interest rates and home mortgages? Well, if we are truly coming out of the recession, it means interest rates may soon begin to creep up as the Federal Reserve tries to keep the economy stable.

Here’s a flash from the past!  Going back even further,  Feb. 1982 was 17.60% Ouch!!

While 1% may not seem like much, with a $200,000 loan there is a difference in total payments of $45,360 when comparing rates from 5% to 6%.   Even though the federal tax credit has been extended until April 30^th, the unknown is when and how much the rates will go up. Don’t wait until the last minute, tax credits are sweet, but your interest rate will be with you for the life of the loan.  The time to take advantage of these low mortgage rates is now!  A. Hockman

That is what’s going through the minds of thousands of homebuyers trying to decide if it’s the right time to purchase a home, or investment property.  Asking themselves, is the market stable enough now, will prices go even lower, should I wait, should I go for it?   Listening to the pros and cons of the media can make it even more mind-boggling. No one can predict the “perfect time” to purchase a property but, this is a great buyer’s market, and prices have come down, in addition to seller’s making good concessions.  With mortgage rates still at historic lows, and plenty of affordable homes on the market, this may be a great time to buy!

Great news!!! The government has expanded the first-time homebuyer tax credit through April 30, 2010, and added a new homebuyer tax credit for existing homeowners who are interested in purchasing a new home.  Learn more about the homebuyer’s tax credit extension at http://www.irs.gov/newsroom/article/0„id=206291,00.html
 
A. Hockman