Updated: November 19, 2009 – Summary (with full details below)

Here is the latest:  Effective Nov. 6, 2009 the changes to the home buyers tax credit program include the following:

Homes have to be purchased between November 6, 2009 and June 30, 2010
(in full contract by April 30).

Closing documentation now required.

Existing home owners are now eligible if they have owned a principal residence for 5 consecutive years out of the 8 years preceeding the purchase of a new home.

Income limits have been raised.

FULL DETAILS BELOW Read the rest of this entry »

UPDATE: Nov. 13, 2009

LONG-TERM RATES FALL TO LOWEST LEVEL IN FIVE WEEKS.
30-Year FRM Below 5 Percent For Five Of The Last Seven Weeks
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First-Time Homebuyer Credit Expands.

Homebuyers who purchase in 2009 can get
a credit of up to $8,000 with no payback requirement.

Overview

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

• Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
• Applies only to homes used as a taxpayer’s principal residence.
• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405.

Updated January 13, 2010

1) Today’s Interest Rates .
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2) Check your credit report FREE

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Mortgage rates drop to a fifty year low

"Even with amazingly low interest
rates, lower home prices and the
first-time homebuyer tax credit,
it is unlikely that we will see
an increase in overall home sales
until we see some stabilization of
employment.

Preparing For Home Ownership

• Rent vs. Buy
  Understand the financial differences between renting and owning.
• Tax Savings
  Learn about the potential tax savings with homeownership.
• How Much Can You Afford?
  Research how much house works within your budget.
• How Much Can You Borrow?
• Learn how much money you might be able to borrow.

The Quick/Easy Mortgage Calculator

All About Mortgages(Source Freddie Mac)

• Fixed or Adjustable-Rate?
  Understand the financial differences between the fixed- and adjustable-rate mortgage.
• Adjustable-Rate Mortgages
  Find out how much monthly mortgage payments might be with an adjustable-rate mortgage.
• Fixed-Rate Mortgages
  Find out how much monthly mortgage payments might be with a fixed-rate mortgage.
• 15-year or 30-year Term?
  Learn how a different term affects your mortgage payment and overall cost of the loan.
• Down Payments
  Research how much of a down payment you should consider.
• Closing Costs
  Estimate what your closing costs might be.
• Extra Payments
  Learn how advantageous extra monthly mortgage payments might be.
• Paying Points
  Find out how paying extra points might lower your mortgage rate.
• Mortgage Insurance
  Understand how to possibly reduce mortgage insurance.

Purchasing A Home, and Avoiding Foreclosure

• Refinancing Costs
  Understand what your refinancing costs might be.

*Used with Permission from Freddie Mac

FICO Scores vs. Credit Scores

fico scores vs credit scores

When you apply for a loan, the interest rate that the lender charges you on that loan is determined by something known as a fico score.

Per Suze Orman: Every single person alive (once they have a credit card or apply for any type of credit) has a credit report AND a FICO score. You should be aware that there are three credit reporting bureaus. They are:

1. EQUIFAX
2. EXPERIAN
3. TRANSUNIONEach one of these bueaus has a FICO score attached to it. Therefore you can have as many as 3 FICO scores.

EVERY MOVE YOU MAKE when you pay a creditor, gets reported to one of this bureaus. It’s up to the creditor which bureau they report to. Therefore, its possible that your credit card payment history would be on one bureau, your car loan on another and your mortgage on still another (or any combination of the above).

Remember: (excerpted from: myFico.com) Lenders use a number of facts to make credit decisions, including your FICO® score. Lenders look at information such as the amount of debt you can reasonably handle given your income, your employment history, and your credit history. Based on their perception of this information, as well as their specific underwriting policies, lenders may extend credit to you although your score is low, or decline your request for credit although your score is high.

Here’s what you need to know: Since rate follows risk, if your FICO score is high the interest rate charged on the loan is lower – if you FICO score is low the interest rate the lender charges you is higher. Read the rest of this entry »

What is the difference between pre-qualifying and pre-approval?

Given the current state of mortgage lender, knowing where you stand credit wise is even more important now than ever.

A pre-qualification is normally issued by a loan officer, who, after interviewing you, determines the dollar value of a loan you can be approved for. No credit checks are done, no employment history taken, nothing is submitted to an underwriter. However, loan officers do not make the final approval, so a pre-qualification is not a commitment to lend. After the loan officer determines that you pre-qualify, he/she then issues you a pre-qualification letter. In times past, before houses were selling very quickly (between 1997-2005) we used pre-qualification letters. However during the peak seller’s market pre-approvals (explained in the next paragraph) became the standard in the Greater Hudson Valley Region.

It is important to note that in truth anyone can be “pre-qualified”. Your realtor can do it for you, they simply have to know the lending guidelines. Read the rest of this entry »

My Friends at AVON have featured Suze Orman speaking to the thousands of AVON reps who are concerned about the economy.  Why would I feature a webinar from AVON?  Listen carefully to this webinar.  Included in the webinar, about 9-10 minutes (or 3/4 of the way) into the video,  is one of the best and easiest to understand explanations of the short sale I have ever heard.  Suze Also Instructs her listeners how to properly handle credit and explains about FICO Scores.

Suze Orman talks about short sales

Suze Orman on Short Sales

If you’d like a way to earn $300 – $500.00 extra income per
month in a very non stressful and fun way, check out the AVON Opportunity.

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It’s amazing how AVON has evolved over the years.
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WATCH A VIDEO ABOUT THE AVON OPPORTUNITY

First Time Homebuyer Tax Credit

Attention First Time Home Buyers:

President Bush signed a major housing bill (H.R. 3221) into law. As part of the housing bill, congress has created a new, temporary tax credit to provide an incentive for first-time home buyers. The $7500 credit will be available for the purchase of a principal residence on or after April 9, 2008 and before July 1, 2009.

What does this mean to you?

Well, if you purchase a principal residence in the next 11 months, or in the past 4 months you become eligible to borrow up to $7500 from the Federal Government. You will have 15 years to pay back this interest free incentive. To apply for the tax credit, simply claim the credit on your next tax return.They haven’t worked out the details of “How” the money will be paid back yet. But if you take advantage of the full $7500 credit, the payment would be around $500 per year. If you sell your house before the 15 year period expires, any amount of the credit that has not been repaid will become due.

If you have been sitting on the fence, watching the market, waiting for the right time to buy…………..
This is it.

Buying your first home is a very stressful experience. Most first time home buyers, have to skimp and save every possible penny they can to get into their First Home. Things are normally very tight the first couple of years. This Tax Incentive could be put to some good use.

Unlike a home equity loan, this credit is not based on your income to debt ratio or the amount of equity left in your home.

Please consult your tax advisor with questions about using this new Tax Credit.