Good news this week (Jan 27th 2010), from the Federal Reserve!

The Federal Reserve on Wednesday advised it will keep interest rates near zero-.25%.  Low mortgage rates should last until the end of the 3rd quarter 2010 (June 30th) to help an economy suffering from high unemployment.

This news coupled with the Tax credit extension is the reason why now is the best time to start your home search.

Tax Credit Bill details 

Legislation extended the existing $8,000 first-time home buyer credit until April 30, 2010. A $6,500 credit is available to existing homeowners who sell their home and purchase a primary home that costs no more than $800,000 or less. To get the government check (yes you will be mailed a check sent to you from the IRS in 6-16 weeks) 

File form 1040X, Form 5405 and a copy of your settlement statement with the IRS (see your tax preparer for more information).

Home buyers have to be under contract by April 30, 2010, with the sale completed by June 30th 2010.

Income limits for the credit would increase to $125,000 for individuals and $225,000 for couples. Home buyers who qualify must stay in their new homes for at least three years or they will have to repay the credit. Investor are not eligible for the tax credit.

Time is running out for the the tax credit for any questions and or to start looking for your next home contact us now......

*This is an example of how the rates can affect your payment: