If you're thinking of buying a house, you could literally save tens of thousands of dollars by doing it sooner rather than later. Here's why:
Homebuyer tax credit: It's not just for first-time homebuyers anymore. In November 2009, Congress expanded it to include existing homeowners with a few exceptions. Here's what you need to know:
•First-time homebuyers - up to $8,000; existing homeowners - up to $6,500
•Existing homeowners must have lived in their home for 5 consecutive years out of the last 8
•Not surprisingly, there is an income phase out - singles between $125K-145K; married couples between $225K-$245K.
•Contract must be signed by 4/30/10; transaction must close by 6/30/10
•You may be able to claim this credit on your 2009 taxes (no waiting!)
•Marriages and divorces complicate it a little bit - ask a tax professional or call me, I can help you wade through it
Interest rates: They're hovering just below 5% this week and are expected to rise to near 6% by the end of 2010. Use the loan calculator to see how it would affect you, but here's a basic rule of thumb:
•For every $100K on a 30-year loan, a 1/2 point increase in the interest rate means about $30 more in monthly payment and about $11K more interest over the life of the loan
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