Tax Credits for Home Buyers/Sellers Set to Expire

The federal tax credits for first time home buyers and buyers "moving up" are set to expire in less then 60 days.Last time this program expired in 2009, there was a fair bit of lobbying, and buzz to get Washington to extend and expand the credit. The result then was that the credit was extended for first time home buyers and expanded to folks that were not first time home buyers, so-called "move-up" buyers.

This time around the effort to expand/extend these tax credits does not appear to have gained much traction. We anticipate that if buyers are not under contract to purchase a home by April 30, 2010, and the credits are not extended, that they will no longer be available.Tax credits reduce (dollar for dollar) the actual taxes due to the IRS, and are much more valuable than deductions or write-offs.
Also noteworthy to report, is that the Federal Reserve has announced they will curtail their highly unusual practice of purchasing mortgage securities, and may in fact become a seller of these same securities. This measure is slated to occur in March (this month). In many cases, the Federal Reserve has been the only, or nearly the only buyer, for certain new mortgage securities. Economists disagree about the exact impact on mortgage interest rates, but most agree that removing a large buyer of these securities will cause a rise in mortgage rates. Now the debate appears to be about how much of an increase is likely, not whether rates will rise.Therefore, the timing is excellent to buy a home, and we are strongly recommending to all that they evaluate for themselves and others, the ability to act now to benefit from both the tax credit and low mortgage rates.If you, or someone in your family, a colleague, or a young professional who is thinking of buying real estate in Berkeley Heights And Beyond, can benefit from learning more about how the program works, and/or how to get a fixed rate better than 5%, please let us know, we'd be delighted to help.

Feel free to share this update with people that can benefit from this unique opportunies.

Contact Mathew Northup for mortagae and tax credit information if you are thinking of purchasing a home Contact Mathew@arlingtoncapital.com Mathew is with Arlington Capital Mortgage. Mathew is always available to speak to you at (609) 921-3131x1334

Want to know more about Berkeley Heights and surrounding areas of Long Hill, New Providence,Warren, Warren or Watchung? Contact Me for Free Information. No Obligation.

How Much is Your Home in Berkeley Heights, NJ Worth?

Berkeley Heights, NJ  Real Estate

Looking Ahead to 2010...

There has been a multitude of press surrounding the real estate market this year. Articles about the weak housing market, increased inventory, absorption rate, sub prime mortgages, etc.. Yes, the average sale price in Berkeley Heights did decline in the past year, However, on a positive note the existing-home sales are expected to rise slowly as indicated by pending sales activity, and continue through 2010.
There are mixed opinions as to when the market will recover in NJ, but statistics are showing us that homes will continue to sell in our town of Berkeley Heights. While location, condition and amenities are important elements, competitive pricing has been and will remain to be, the major factor to a successful sale.

So how does the Berkeley Heights NJ real estate market look these days? Currently Berkeley Heights has a average listing price for homes for sale of $706,824. The Union county average currently is $560,436.
The current number of properties on the market in Berkeley Heights is 56, with 23 properties "under contract" (as of 03/01/2010). The Berkeley Heights median listing price is $611,650.

If you're thinking of buying or selling a home, Call Me! Let me show you what a full service Realtor can do for you. You Will Not Regret It. The Difference is the Experience that I Bring to my Clients.

Maria Lourdes Couto, ABR, CRS, GRI, SRES
RE/MAX Premier
"Berkeley Heights Neighborhood Specialist"
Contact me directly at (908)400-1801
E-Mail: Homes@MariaLCouto.com
BerkeleyHeightsAndBeyond.com

For Berkeley Heights and Beyond Top 5 Facts About Expanded Home Buyers Tax Credit

On November 6, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 into law, extending and expanding the important home buyer tax credit, and thereby providing many Americans with just the break they need to buy a first home or move up to a new home.
1. Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven't owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.
2. Salary requirements: Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
3. Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit-it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.
4. It's refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.
5. Timeline: The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one's individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.
For more information on the home buyer tax credit, e-mail me or visit http://www.irs.gov/. Please forward this email to friends and family who may also be able to take advantage of this unique opportunity to purchase the home they've always wanted.

Want to find out more about Berkeley Heights and surrounding area?

Contact Me!!

Maria Lourdes Couto, ABR,CRS,SRES
REALTOR-Associate
RE/MAX Classic Group440 Springfield Ave
Berkeley Heights, NJ 07922
Cell: 908-400-1801
Direct Line: 908-376-1568
E-Mail: Homes@MariaLCouto.com
BerkeleyHeightsAndBeyond.com

November 27th, 2009 Central New Jersey Homes Posted in Central New Jersey Real Estate

THE REAL LOWDOWN

Firs-time buyers often find it challenging to come with a down payment. however, they may take heart in the fact that some financing options make it possible to findmortgages for as much as 97% of the home's value. This means that they can place as little as $ 5,514 down on a home costing $183,000. On the other hand, this low down payment option is likely to come at a price. Loans with low down payment usually have higher interest rates. In addition, homeowners with less than 20% equity in their homes are required by their lenders to purchase private mortgage insurance. Still the low down payment option is a good way to get your foot in the door. I am familiar with all of the many options open to you look to purchase a house, and I can recommend trusted, experienced mortgage brokers for if you require their services.



(Private mortage insurance covers the lender in the event that the homeowner should default on his or her mortgage.)