Friday, February 19, 2010

Interest Rates Rising, Tax Refund Running Out

My mortgage professionals gave me the bad news this morning. At least it's bad for borrowers. The Federal Funds interest rate went up 0.25% today. Rates are still very low, but no one likes to pay more than they have to on loans. Mortgages immediately jumped up by about the same amount, but expect them to settle down in about a week (all other things remaining equal). Expect others types of lenders to follow suit sometime soon. Stay tuned.....

The First Time Home Buyer tax refund program is set to expire on April 30, 2010. That means that qualified first time home buyers only have a couple of months to find their home and have a deal agreed to in writing with the seller. Then they will have until June 30, 2010 to close escrow. By doing so, qualified first time home buyers lock in a an automatic $8,000 tax refund from the federal government. I sure wish this was available when I bought my first home. My first home purchase was kind of like Charlie Brown's Halloween. If you weren't a refugee from another country, all you got was a rock. Anyway, the same time lines are set to expire for repeat home buyers as well. Qualified repeat buyers will receive a $6,500 tax refund. For more questions about the market, contact me through my website or (408) 247-4029.

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