Kristi's North Georgia Real Estate Blog

First Time Home Buyer Tax Credit to Expire 4/30/2010

2010-04-21T11:03:00.000-07:00

Taken from the IRS.gov website..

WASHINGTON — A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers.

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

Federal changes to mortages-what it means to me

2010-01-29T07:36:00.000-08:00

There were many changes to the GFE that went into effect in mid January, 2010. One particular change is that the appraisal for the borrower's loan can not be ordered until 3 business days after the lender ( not the broker) has supplied the TIL or Truth in lending. It will be important for borrowers to realize that this new requirement may slow down the loan process. 30 day closings are few and far between. When negotiating a contract, it may be in the buyer's best interest to have a realistic expectation of a good closing date. Many realtors are using a 45 day closing timeline due to some of these mortgage changes.

Feel free to contact me with any additional questions you may have. I look forward to working with you

Kristi Dalton
Your Realtor For Life

Buy Now-Save Thousands!!

2010-01-28T12:07:00.000-08:00

Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead – submit all FHA mortgage applications by the last week of March.

Don't wait... call today.

Kristi Dalton
Keller Williams Realty
706-878-8525

An Exciting Opportunity

2010-01-25T03:52:00.000-08:00

NOW is YOUR OPPORTUNITY!

Are you interested in making additional money, have a small amount of money to invest, and just a little time…? I’d like to share something with you. I had the privilege of meeting a gentleman who’s made over $20M in network marketing and he’s joined a new company whose potential is absolutely incredible. I’m sharing it with everyone I know, because everyone needs help right now… If this goes even half way close to expectations, we all will be wealthy and will be able to lead the life we’ve always dreamed of… I know you may be skeptical but you owe it to yourself and your family to take some time and look at this, don’t make any decisions until you have evaluate everything…

Ø The Opportunity – Niche Beverages

Ø The Commitment – Enroll Three People – Help Them Get Three

Ø The Commission – You Collect $6, $6.50 or $8 each month for each person in your downline no matter where they are placed. No fancy or difficult requirements Amount depends upon number of people in your downline, every month.

Ø It’s that simple! – Receive Monthly Income that keeps growing each month!

Remember the story “Double a Penny Every Day” Question? This is so much more powerful! Timing is everything…just think, what if you were one of the first distributors for Monavie…where would you be today? The official Launch date is January 30th, so right now we are in a prelaunch…the Timing couldn’t be more perfect.

Here’s the website www.pureenergyclub.com/kristidalton that provides more information, take a look and let me know if you’re interested in meeting this gentleman. He conducts weekly meetings around the area and I’d love to introduce you to him. He’s a wealth of information! Whether you take advantage of the opportunity or not, it would be a real treat to meet him. As you know the first step to success is to surround yourself with successful people and find a mentor who has done it before.

My motto this year is “2010 – The Year of Abundance & Mind Like Water”

Please let me know your thoughts on this one…we have all the pieces in place…now it’s up to you!

Thanks,

Kristi Dalton

Low Interest Rates- Fact or Fiction

2009-12-15T10:56:00.000-08:00

Dear Readers,

Below is an excerpt taken from Business Week online detailing some history about our hisotrically low interest rates right now. Why not take advantage of the Triple Crown offering : low rates, great inventory and extended tax credit. You won't find better deals out there. Read on for more information:

If You Don't Buy a House Now, You're Stupid or Broke!!

Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth

Well, you may not be stupid or broke. Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.

As of today, the average 30-year fixed-rate loan with no points or fees is around 5%.
In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.
In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.

But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%.

Interest Rate Lessons
And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let's assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

As you can see by the excerpt above, the 5-5.5% rate that lenders are touting now are still great! Call me today and I can help you with the entire home buying process from pre-qualification to home selection to closing. I look forward to working with you.

Merry Christmas
Kristi Dalton
Keller Williams Realty
706-878-8525

New Home for Christmas

2009-12-06T17:52:00.000-08:00

With the large home inventory and the extension of the tax credit, now is a great time to buy a home. The large inventory and the fact that sellers are willing to deal, this is a great time to buy. Call me today for a list of homes. 706-878-8525

Struggling to make your mortgage payment

2009-11-20T12:46:00.000-08:00

Thousands upon thousands of homeowners currently find themselves in a financial hardship situation. Don't let things get so bad that you are ready to throw in the towel and let your home go into foreclosure. Before it gets to that point, contact your loan servicer. More and more banks are willing to work with homeowners to stay in the home. They do this for a variety of reasons...

1. Banks don't want the houses back
2. If a payment plan can be worked out, homeowners typically will take good care of the property

Contact your loan servicer about a loan modification. This can involve a reduction of interest rate, reduction of loan amount or both. Sometimes, lenders will move currently due payments to the "back" of the loan so read the fine print.

Don't be afraid to take this step.. all they can say is no.

November Activities in Helen Georgia

2009-11-20T07:13:00.001-08:00

Happy Friday!

Here is a link to some fun activiities in and around our area.

http://helencvb.com/calendar/month.php

Find All Things in the North Georgia Mountains

2009-11-19T12:21:00.000-08:00

Visit my website at www.kristidalton.com to get valuable information on relocating and points of interest and thousands of local listings for our area.

Find HUD Listings

2009-11-19T12:20:00.000-08:00

Visit my website at www.kristidalton.com to view all HUD listings

Tax Credit Extended

2009-11-19T11:47:00.000-08:00

Good News!!!

The senate has agreed to extend the existing $8,000 tax credit for first-time homebuyers. More good news.. repeat buyers who have owned their current primary residences for at least five years could qualify for a credit of up to $6,500.

The tax credits would be available to homebuyers who sign sales agreements by the end of April 2010. They would have until the end of June 2010 to close on their new homes.

1. Is the homebuyer tax credit applicable to those who are building a home whether it be their first or second?

For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been purchased on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April, 30, 2010).

2. Is there a credit available for commercial real estate?

No. Currently there is no credit available for commercial real estate purchases.