They keep talking about the "double dip" in the news and just in case you hear that expression, a double dip is not what you do to an ice cream cone! Well, these days, it is always good to introduce some humor when the news is not always great. However, there is some really good news right now. Rates are the lowest they have been all year. That is really saying something, because rates have been very low ALL year. As a matter of fact, rates on home loans are the lowest they have been in our generation. That is pretty low. Why is that good news? If someone is thinking about purchasing a home or a car or refinancing, it is a great time to move now. Prices are low and rates are ridiculously low, thus the time is right. We need more people to buy homes and cars over the next few months so we can avoid a double dip recession. And that would be a very good thing.
What is the bad news? Rates as low as these are indicative of a slow economy. We just need to see one number from this week to demonstrate how slow things are: first-time claims for unemployment insurance went over the 500,000 mark in the past week. While still lower than the heights of the recession, it was the first time we had crossed the 500,000 barrier since late last year. Once people step up their purchases of homes and cars, this will prompt companies to hire more employees. In turn, this will make consumers more confident to purchase more homes and cars. Then the cycle of economic growth will start back up and talk of a double dip will quiet down. And when that happens, we promise rates will go up. We just can't say when. So, for those who are waiting for the economy to get better, it will cost more for you to purchase if you are behind this curve. The trend setters will just buy their ice cream now while there are enough sprinkles to double dip....
Compliments of Suzanne Smith, HNB Mortgage.
Wednesday, September 15, 2010
Tuesday, June 29, 2010
What do you Want and Need in a Home?
Here are many of the considerations you'll want to discuss before searching for home:
* Desired number of bedrooms and baths
*Preferences regarding kitchen, dining, family rooms, etc. and preferred home layout
*Need for a garage or parking space, and if so, for how many cars?
*How important is energy efficiency or other green home features?
* Commuting considerations.
*Landscaping considerations-the need for open play areas, privacy, patio space, decking, ect.
*Related costs such as homeowner association fees and property taxes.
*How much do you want to invest in a home beyond the purchase price, either financially or in terms of sweat equity, if you can't find exactly what you want?
* How long do you plan to live in this home? How does this impact the type of home you will buy, how much you'll spend, and your choice of location?
These are just a few tips before you get started on your new home search. Call Sandy and Sara today with any questions you may have!
* Desired number of bedrooms and baths
*Preferences regarding kitchen, dining, family rooms, etc. and preferred home layout
*Need for a garage or parking space, and if so, for how many cars?
*How important is energy efficiency or other green home features?
* Commuting considerations.
*Landscaping considerations-the need for open play areas, privacy, patio space, decking, ect.
*Related costs such as homeowner association fees and property taxes.
*How much do you want to invest in a home beyond the purchase price, either financially or in terms of sweat equity, if you can't find exactly what you want?
* How long do you plan to live in this home? How does this impact the type of home you will buy, how much you'll spend, and your choice of location?
These are just a few tips before you get started on your new home search. Call Sandy and Sara today with any questions you may have!
Tuesday, March 30, 2010
Meet Sara Vestal
Meet Sara, Agent for Sandy and Bill Scott.
Raised in a family of Residential and Commercial Realtors, Sara was destined to hold a real estate license. She graduated from Texas Tech University where she received a Bachelor of Science in Human Development and Family Studies. After graduation, she headed to Dallas and served as Development Coordinator for the American Heart Association. Soon after, Texas Tech University employed her to help recruit and advise incoming students from the Forth Worth area. Her husband brought her back to West Texas after receiving employement with Warren Caterpillar. She is now a licensed Real Estate Agent working with Sandy and Bill Scott. Sara is active in the Midland community through The Junior League of Midland, Inc. She spends her time volunteering through the League in varous family education projects. Sara loves West Texas and would be happy to find you a place to call HOME!
Tuesday, January 5, 2010
Homebuyer Tax Credit Questions & Answers
Who is eligible?
First-time homebuyers are eligible for the $8,000 credit. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the purchase. Move-up buyers are eligible for the $6,500 credit. Move-up buyers must have resided in their homes for three out of the five previous years.
How does the tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all of the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return, a person has a total tax liability of $9,500, an $8,000 credit would wipe out all by $1,500 of the tax due.
What happens if the purchaser is eligible for an $8,000 credit but his/her income tax liability is only $6,000?
This tax credit is what is called a "refundable" credit. Thus, if the eligible purchaser's total tax liability was $6,000, the IRS would send the purchaser a check for $2,000.
Can I use the credit amount as part of my downpayment?
Some states and local governments have provided mechanisms to provide for this by providing a loan secured against the credit. Check with your loan officer for such programs.
This article is compliments of Suzanne Smith with HNB Mortgage.
First-time homebuyers are eligible for the $8,000 credit. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the purchase. Move-up buyers are eligible for the $6,500 credit. Move-up buyers must have resided in their homes for three out of the five previous years.
How does the tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all of the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return, a person has a total tax liability of $9,500, an $8,000 credit would wipe out all by $1,500 of the tax due.
What happens if the purchaser is eligible for an $8,000 credit but his/her income tax liability is only $6,000?
This tax credit is what is called a "refundable" credit. Thus, if the eligible purchaser's total tax liability was $6,000, the IRS would send the purchaser a check for $2,000.
Can I use the credit amount as part of my downpayment?
Some states and local governments have provided mechanisms to provide for this by providing a loan secured against the credit. Check with your loan officer for such programs.
This article is compliments of Suzanne Smith with HNB Mortgage.
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