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.
Thursday, December 17, 2009
Happy Holidays!
We would like to wish you and your family a joyful holiday season. Enjoy great family, friends, food, and laughter as we bring in 2010!
Wednesday, December 9, 2009
10 Reasons to List During the Holidays
1. People that look for a home during the Holidays are more serious buyers!
2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!
3. Since the supply of listings will dramatically increase in January there will be less demand for your particular home! Less demand means less money for you!
4. Houses show better when decorated for the Holidays!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a home during the Holidays than they do during a working week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture these buyers!
9. You can still be on the market, but keep the option to restrict showings during the six or seven days during the Holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
~This article courtesy of West Texas Abstract and Title Co.~
2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!
3. Since the supply of listings will dramatically increase in January there will be less demand for your particular home! Less demand means less money for you!
4. Houses show better when decorated for the Holidays!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a home during the Holidays than they do during a working week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture these buyers!
9. You can still be on the market, but keep the option to restrict showings during the six or seven days during the Holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
~This article courtesy of West Texas Abstract and Title Co.~
Friday, November 13, 2009
More Homebuyers Qualify for Tax Credit
Ann Arbor, MI November 6, 2009 - Congress just passed an expanded version of the $8,000 first time home buyer tax credit that was set to expire on November 30. "The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. "Although the tax credit remains at $8,000 for home buyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for home buyers that have lived in their current primary residence for at least five consecutive years out of the past eights years. Under the old rules, move-up home buyers did not qualify.
The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. "If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010." Nicholas said. "It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.
The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. "This means that more people will qualify for the credit - especially in parts of the country with higher costs of living." Nicholas said. "This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit."
There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:
*The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others.
*If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)
*The credit applies even if you have co-signers on your mortgage loan.
If you have any questions about qualifying for the new tax credit, please contact Sandy Scott with Real Estate One at 432-683-1377 or Suzanne Smith with HNB Mortgage at 432-683-0081.
This article compliments of Suzanne Smith, HNB Mortgage, Midland Texas, 432-683-0081, suzanne@hnbmortgage.com.
The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. "If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010." Nicholas said. "It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.
The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. "This means that more people will qualify for the credit - especially in parts of the country with higher costs of living." Nicholas said. "This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit."
There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:
*The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others.
*If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)
*The credit applies even if you have co-signers on your mortgage loan.
If you have any questions about qualifying for the new tax credit, please contact Sandy Scott with Real Estate One at 432-683-1377 or Suzanne Smith with HNB Mortgage at 432-683-0081.
This article compliments of Suzanne Smith, HNB Mortgage, Midland Texas, 432-683-0081, suzanne@hnbmortgage.com.
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