Tax Credit for Home buyers

First-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing —This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance — This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

Of course, not all are encouraged by the latest attempt by government to spark the economy. One of the loudest critics to voice is opinion is CNBC’s Rick Santelli.

It’s still unclear how the lenders will react once the plan is implemented. Currently, guidelines remain strict and new lending hurdles are added everyday. That doesn’t change the fact that the Texas market is extremely attractive and presents some fantastic opportunities for home buyers and those seeking a refinance loan.

Texas Refinance information is available HERE

Texas Home Purchase information is available HERE

Search for any Texas Real Estate HERE

Check today’s Texas Interest Rates HERE

Greg Matson – Alamo Premier Mortgage Group

It is a very interesting debate and one that may change the current real estate market landscape in ways unseen in years. Will the value of the United States dollar plunge? If so, will interest rates skyrocket? At what point will the government decide borrowing and spending will need to decrease? Are we on the verge of massive inflation?

Those who predicted the current economic and real estate problems are basically the same individuals who are so adamantly against the current bailout proposals. If their track record for predicting what may happen continues to be accurate, the real estate market will continue its struggles for months, if not years to come.

Timing is everything and today’s snapshot in time presents some excellent real estate opportunities. The advice from Alamo Premier Mortgage Group is don’t wait – take advantage of the current market and don’t gamble that rates will continue dropping. We are already at historic lows.  

Additional Refinance and Home Purchase information is available HERE.

Be prepared and do not let the excellent opportunities today slither away.

Greg Matson – Vice President

Alamo Premier Mortgage Group

The frustrated coach gathered his players around and asked why no one shot the ball. One player answered that he never had the best shot. Another said that he was waiting for a better shot. The coach’s son asked “how can we tell what the best shot is?” The coach patiently explained that when you only have a certain amount of time, the best shot is the one that becomes available. Finally understanding the concept, one player asked if they could go out on the court and do it again. ”No”, said the coach, “that time is over.”

Lesson learned.

Interestingly enough, we are seeing a similar circumstance in the lending industry. Media reports that rates were headed to 4.5% or lower stopped many homeowners in their tracks from pursuing wonderful refinance opportunities. Why? They’re looking for a better shot. The demand for mortgage applications reached a five year high at the end of December. However, many are still passing. Those who ignored the media noise were able to secure rates as low as 4.65%. Since that time, the market has returned to increased daily fluctuations. Is it wise to continue passing up the current reality for a better shot? Just be aware that when this window of opportunity expires, you may be left with no shot.

With 2009 upon us, I wanted to pass along some interesting market information, courtesy of Barry Habib. Barry is the founder of the Mortgage Market Guide and frequently appears on both Fox Business and CNBC.  There an accounting scenario called “Mark to Market” that most reporters just do not understand. Barry explains how this practice created the present market conditions – and what to be watching for in 2009.

WATCH MR. HABIB BY CLICKING HERE

Happy New Year to one and all! For those not waiting for a better shot, refinance information is available HERE.

Greg Matson – Vice President

Alamo Premier Mortgage Group

gmatson@alamolending.com

Despite the downturn, Texas continues to maintain its status as one of the most attractive real estate markets nationwide. In fact, Forbes Magazine ranks San Antonio as America’s third best, long-term housing city. The link to the article is provided HERE.

A strong economy and housing prices that were never over-inflated are the main ingredients for the Alamo city’s positive outlook. Texas markets consistently show up on the lists of most affordable places to purchase a home. Excess inventory, coupled with bargain sales prices and low interest rates make for an extremely favorable purchasing environment. If you subscribe to the “timing is everything” theory, then there’s no time like the present.

Pocketbook reality is producing a huge hurdle for most potential home buyers. A good rule of thumb for a purchase is to allocate roughly 28% of one’s pre-tax income towards a mortgage, taxes and insurance. If the bank account is pretty thin, and the ratios are high, trepidation sets in. Will we see increased strength in these areas? The massive Fed intervention in the form of bailouts and rates are producing mixed results. Consumer confidence is still shaky. The short-term outlook may be appealing, but there are many experts predicting an economy that will only get worse – thanks to government intervention.

We have discussed the unintended consequences of good intentions many times in previous posts. Reality currently provides these small real estate comforts; 1) Comparatively, our Texas real estate market is better yours; 2) Comparatvely, our Texas economy is better than yours; 3) The timing for considering a purchase or refinance is excellent.

Will it get worse before it gets better, or will we continue to witness slow, incremental improvement? Either way, Texas is well suited to weather the storm better than anyone else. It may not be comfortable and the opportunities may be sporadic – just be glad we live here and not in another state.

Interest rate information available HERE. Purchase information available HERE and refinance information available HERE.

Greg Matson – Vice-President

Alamo Premier Mortgage Group

The Fed made a cut from 1% down to the 0% to .25% range – a move that displayed some unexpected aggressiveness, along with two very influential statements. First, the Fed said weak conditions likely warrant an exceptionally low Fed funds rate for some time. Second, the Fed said they will employ all available tools to promote a resumption of growth. Aggressive would be an understatement. In essence, the Fed is willing to step in and become the buyer of the bonds used to finance mortgages – snapping up government and mortgage debt. That’s the big news. It sent stocks soaring while driving down the bond market, along with interest rates. Optimism prevailed, dominating the headlines.

Want a better headline? Try “Government says risk is minimal! This is too good to pass up! Go ahead, Make Your Day!”

30 year fixed mortgages are tied directly to the bond market and there is a concentrated effort unfolding to drive it down. This creates some unbelievable refinance opportunities, but the main focus is home purchases. Homes sales have tanked, coupled with a time of the year where sales are always slow. But come springtime, the home buying season, the effort to create the best possible purchasing environment is well underway. Can potential home buyers really pass up fantastic rates AND remarkably priced homes?

As we have articulated for quite some time, the housing market in most of Texas is strong. Home values did not plummet as so many did nationwide. The inventory remains bloated, which in turn creates wonderful buying opportunities and now, great financing options.

The Fed moves do not provide a solution to the foreclosure problem, but that is a topic for another day. We are now, officially, in the midst of a refinance boom and on the verge of a potential purchase boom.

The big questions we receive from our Alamo Premier Mortgage Group clients are pretty simple – how low will it go and when will it bounce? Remember, government does not set rates, the market sets rates. Everything moving forward is pure speculation. The Fed clearly stated that they are going to influence the market aggressively, for the near future. They are pulling out all of their stimulating gadgets. The market will bounce, so don’t get caught waiting for an additional eighth of a point here or a quarter point there. Exercise some patience, but start making your refinance and purchase plans now. There have already been too many unexpected economic turns to predict what will happen next with any clarity.

The Texas real estate market has just entered a new beginning. How to start? Just click HERE for home purchase information; click HERE for interest rate information and click HERE for refinance information.

Nothing sparks consumer confidence like a bevy of positive headlines and media reports. The housing market is ready for the good news.

Greg Matson – Vice President

www.gmatson@alamolending.com

The first video is from a home just outside of Jacksonville, Florida. The second is located in El Paso. There are two more Christmas Lights videos further down in the blog – the first video from a home in Perth, Australia and the second is located in Frisco, Texas. Texans know how to get into the holiday spirit.

Merry Christmas!

Despite the bevy of recent, negative financial news, there are some positive aspects that warrant our attention. So, would you be surprised to learn that a program exists that provides 100% financing? Go ahead and say it again out- load – 100% FINANCING!

Who? How? Where? What?

The same government entity that oversees the beef industry is responsible for this program. It’s a USDA loan. Technically, it’s called a rural loan, but that term is misleading. Rural is defined by population density – 20,000 or less in a community. Outside the metro areas of the big Texas cities, there are countless homes that will qualify for this program. The features are fantastic. For example;

*No closing costs required   *No down payment required   *No minimum credit score required   *Unlimited seller contributions   *No gift limits   *Financing up to 102% of appraised value   *No first time home buyer requirements   *Rates comparable to FHA

There are income limitations for this program, but the income limits increase with the number of people living in the home. Income limits are determined by each Texas County. For example, a couple may be limited to an income of $62,000, but a couple with two children could have an income limit of $84,000. The program is an excellent benefit for families.

It’s hard to believe that USDA has been in the lending business since 1991. Why haven’t more people heard about this program? Good question. The best answer is the government has not been active in promoting its features. Promotion has been left to the brokers and banks. In this regard, ignorance reigns supreme. Few know about the program, few know how to do it, few know where to do it. Alamo Premier is hoping to impact our corner of the lending world with the good news.

Where do these properties exist? Just click HERE to learn more and how to receive a link to the property finder.  Or, just shoot me an email and make the request directly.

Hopefully, this will add to your increasing holiday cheer.

Yes Virginia, there is a 100% financing Santa Claus – and the gift will keep giving for all 12 months of the year!

Greg Matson   Alamo Premier Mortgage Group

gmatson@alamolending.com

Obama has also discussed a housing stimulus as well, to stem the tide of foreclosures, including a temporary 90–day freeze on foreclosures, as well as measures to address the demand side of the housing issue. This package includes $25 billion in state fiscal relief, which Mortgage Law Central says will help avoid “painful property tax increases.”

Obama also wants to “aggressively and comprehensively” implement the recently–passed rescue plan and the Hope for Homeowners Act. This means the Treasury, HUD, Fannie Mae and Freddie Mac, and all of the banks and loan servicers who benefit from the rescue bill will continue to coordinate broad mortgage restructurings and loan modifications for struggling homeowners. No one knows for sure exactly how this will be implemented or what it even looks like yet, but we’ll keep you updated as the details are released.

Reformed Bankruptcy Laws - Obama has promised to repeal the 2005 bankruptcy bill. A controversial measure, this will allow judges to alter mortgage terms during a bankruptcy, providing more protection for struggling homeowners.

New Mortgage Interest Tax Credit – Obama is expected to create a 10% universal mortgage interest credit for those who don’t currently itemize. This means about $500 in savings for 10 million American homeowners.                                                                                                      

Protection Against Mortgage Fraud and Predatory Lending – During the campaign, Obama blamed the financial crisis on lax government regulations, so look for tougher regulations, new criminal penalties for mortgage fraud violators, more funding for enforcement programs, more detailed loan disclosure laws, new counseling programs and other consumer protections, including a new Home Obligation Made Explicit (HOME) score (kind of like a new APR calculation) to help borrowers better understand and compare mortgage costs during the mortgage process. This will go a long way in protecting new home buyers from the opportunists that have given good mortgage professionals like us a bad name in the last few years. And since so much of our business depends on referrals from satisfied clients, the good news is a lot of these people are now out of business.

We hope that any new measures introduced by the Obama administration will help keep a new breed of copycats from invading our industry as the real estate market begins to change for the better in 2009 and beyond. From now until the end of the year, you can expect volatility to continue in the financial and credit markets. This means mortgage rates, too, so if you or anyone you know is looking to buy or refinance a home, give us a call. Alamo Premier monitors the performance of mortgage–backed securities on a daily basis, which allows our clients to capitalize on changes that will help lock in the best rate for their individual goals and needs.

Rumor has it that in order to pay for the electric bill, the home owners refinanced their homes and pulled out some cash from their equity. In a related story, interest rates are at their lowest levels in years. You can check interest rates HERE.

Tongue and cheek aside, Merry Christmas! Here’s wishing you and your family continued blesssings this holiday season.

Well this contestant gets down to two suitcases. One has one million dollars. The other has $1. The banker offers $603,000 to stop. The contestant says “NO DEAL!” and takes the chance that he has the big money suitcase.

He won one dollar. Sometimes, you roll the dice one too many times. It’s human nature to ignore what we have and focus on what may be even better. The art of speculating.

Today, interest rates have reached some of their lowest levels in six years. However, the big story in the last 24 hours has been reports that interest rates may drop even lower. Some reports say as low as 4.5%. Our phones at Alamo Premier Mortgage Group have been ringing off the hook with questions. It is interesting to note that these reports were quoting unnamed sources. Did not matter. Pure speculation entered the lending and financial dialogue and the topic made it’s way onto the cable news shows. Would this scenario jump start the housing market? 

http://www.foxbusiness.com/video/index.html?playerId=videolandingpage&streamingFormat=FLASH&referralObject=3263422&referralPlaylistId=1292d14d0e3afdcf0b31500afefb92724c08f046

The speculation revolves around government intervention. Again. It is worth noting that the Treasury and the Fed do not set interest rates – markets set interest rates. It is also worth noting that the best intentions of government do not guarantee anything. In fact, they often produce unintended consequences. I found these comments from a Missouri mortgage broker very interesting and insightful. 

Bottom line – interest rates are at the lowest levels in years. Could rates go lower? Sure, but it’s not guaranteed. Let’s hope they continue at these levels. If you are considering refinancing your home, check out our latest INTEREST RATES or just click HERE to get started. There’s no time like the present. The present reality is a great deal. If you wait, and speculate, you may end up with no deal.

More questions? Just give me a call.

Greg Matson – Vice President

Alamo Premier Mortgage Group

(888) 340-1390