RX-7 Addict Posted August 18, 2008 Report Share Posted August 18, 2008 http://money.cnn.com/2008/08/15/real_estate/buyers_tax_credit/index.htm?postversion=2008081814 Basically, heres how it works.. If you are a first time home buyer (or first time you've owned a home in 3+ years) between April, 9 2008 and July 1, 2009 uncle sam will give you a $7,500 loan @ 0% interest (free money!). You have 15 years and $500 per year additional taxes to pay it off ($7500 total due). Anyone with a quick inflation calculator can see that this is a great deal - chances are in 15 years that $500 is worth about $250 today. Put that money in a safe, conservative investment or put it towards upgrades to your new house to add value when you sell. One caveat is if you sell the house, the balance of the money borrowed is due. Sounds too good to be true- the government is really offering big discounts and incentives to get home inventory levels down. Quote Link to comment Share on other sites More sharing options...
Ramsey Posted August 18, 2008 Report Share Posted August 18, 2008 im looking to buy begining of next year.. so i will deffinitly be looking into this. Quote Link to comment Share on other sites More sharing options...
Mallard Posted August 18, 2008 Report Share Posted August 18, 2008 Berto, You missed that it's actually a 17 year loan. You pay it back over 15 years, but don't make your first payment for two years. Quote Link to comment Share on other sites More sharing options...
RX-7 Addict Posted August 18, 2008 Author Report Share Posted August 18, 2008 Even better (not Berto) Quote Link to comment Share on other sites More sharing options...
Stallion Motorsports1647545491 Posted August 19, 2008 Report Share Posted August 19, 2008 looks like it is 10% of sale price if you already bought within the past 3 years. i dont see how this will help many of the people that are already living with empty pockets. will this help sell some empty new builds?...maybe. tom Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted August 19, 2008 Report Share Posted August 19, 2008 Still not buying a house yet. +1. Good call. If you're in Ohio I would wait until 2009. Check the fine print...the gov't deal will go into next year to still be redeemed. Why rush out now to buy something? Quote Link to comment Share on other sites More sharing options...
evan9381 Posted August 19, 2008 Report Share Posted August 19, 2008 last couple weeks ive actually been thinking of starting to look for an inexpensive home toward beginning to mid 09, that way i can stop wasting money by renting Quote Link to comment Share on other sites More sharing options...
RX-7 Addict Posted August 19, 2008 Author Report Share Posted August 19, 2008 +1. Good call. If you're in Ohio I would wait until 2009. Check the fine print...the gov't deal will go into next year to still be redeemed. Why rush out now to buy something? I just bought a house - I wanted to wait a little bit, but I found one in the location I wanted at a price I thought was a steal.. One thing to consider about waiting for our crap economy to bottom out and recover: Inflation. Inflation is projected to rise quite a bit in 2009 in some predictions even triple. http://www.frbsf.org/education/activities/drecon/2002/0206d.gif Fed interest rates are historically low, and they will have to rise eventually, because inflation will go out of control with really low rates and the Fed will need to raise rates eventually. Mortgage rates go up with inflation, , as do fed rates , see the graph above. Inflation in the 70s were out of control, and people were paying 12% or more for mortgages. $200,000 over 30 years @ 6% interest = 1200 per month $200,000 over 30 years @ 10% interest = 1755 per month I'm not saying 'now is the time to buy', I think prices will fall through 08 and some of 09, but if inflation goes out of control, mortgage rates will really suck and will cost the average borrower much more than what they gain in a 10% decrease in a selling price by holding out for another year. Quote Link to comment Share on other sites More sharing options...
99FLHRCI Posted August 19, 2008 Report Share Posted August 19, 2008 "Buyers who have not owned a home in the past three years can take a tax credit worth 10% of a home's sale price, up to $7,500, whichever is smaller. The credit is good for homes closed on after April 9, 2008 and before July 1, 2009, and can be taken on taxes filed during 2008 or 2009. Even buyers who bought a home before the bill passed, but after April 9, can claim the credit." Nothing to do with first time home owners. Also, does not do any good unless you buy a home between April 9, 2008 and July 1, 2009. Quote Link to comment Share on other sites More sharing options...
Mattsv8 Posted August 21, 2008 Report Share Posted August 21, 2008 wow we are looking to buy our first home as well. nice. Quote Link to comment Share on other sites More sharing options...
Doug1647545489 Posted August 21, 2008 Report Share Posted August 21, 2008 I'll be taking advantage of this soon. I was giong to buy a house this fall, but my parents just bought a lake house 10 mins from my work that they won't be using until Feb. I'll be moving into there next month and saving even more money and buying my house next year. Quote Link to comment Share on other sites More sharing options...
BloodRed Posted August 21, 2008 Report Share Posted August 21, 2008 I signed on my first house on April 28,2008. But, I really doubt that I will take it. I mean everyone could use the money, but I really don't need it. I may take it next year when I need to get a new roof. Quote Link to comment Share on other sites More sharing options...
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