Please read the data facts below and react accordingly. Meaning hurry up and call me so we can help you buy that house while interest rates are AMAZING low.

Low Mortgage Interest Rates Create More Incentive Than First Time Homebuyer Tax Credit

With interest rates dipping as low as 4.25% to 4.75% on a 30 year fixed, the tax credit gone should not make much of a difference in the minds of home-buyers. However, that has not been the case.  So far the mortgage application volumes since the tax credit ending has been very low.  Most borrowers have not yet realized that due to the low interest rates that the long term benefits of owning a home is more beneficial today than the customer who bought their home 3 to 6 months ago.  The reason for this phenomena is due to interest rates creeping down to all time low levels between 4% to 5%.  Most homeowners who took advantage of the first time home-buyer tax credit paid for mortgage rates in the ranges of 5.25% to 5.75% range.

So let me give you 2 great examples using a $90,000.00 loan and a $180,000.00 loan of the benefits today buying a home versus the tax credit of yesteryear.

Example #1:

First Time Home-buyer bought a $100,000.00 home and put 10% down during the first time home-buyer tax credit.
The loan was for $90,000.00 at a rate of 5.5%.  That Principal and Interest payment is $511.01.  This borrower earned the $8,000.00 tax credit.

vs.

The same First Time Home-buyer bought a home today at $100,000.00 and put 10% down.  The loan was for $90,000.00 but now the estimated rate is 4.75%.  That Principal and Interest payment is $469.08.  The borrower did not earn $8,000.00 but
is now saving $41.93 a month.  over 360 payment or 30 years, this total:  360 payments X 41.93 =  $15094.80 in payment
savings.

This is basically 2 times more beneficial than the first time home-buyer tax credit.

Example #2:

First Time Home-buyer bought a $200,000.00 home and put 10% down during the first time home-buyer tax credit.  The loan was for $180,000.00 at a rate of 5.5%.  That Principal and Interest payment is $$1022.02. This borrower earned the $8,000.00 tax credit.

vs.

The same First Time Home-buyer bought a home today at $200,000.00 and put 10% down.  The loan was for $180,000.00 but now the estimated rate is 4.75%.  That Principal and Interest payment is $938.97.  The borrower did not earn the $8,000.00 but is now saving $83.05 a month.  Over 360 payments or 30 years, this total:  360 payments X $83.05 = $29,898.00 in payment savings.

This is basically 4 times more beneficial than the first time home-buyer tax credit.

The hard part is predicting the interest rates, and these rates will not stay this low forever. If you felt you missed out on the tax credit, quit kicking yourself.  You can still get that home and get the same benefit.  Yes it is not instant money, but it also does not come with tax consequences if you sell your home early (please seek CPA about that).

The reason I shared this is because I feel we all got sucked into believing all the gimmicks and tax credits as a sole reason to buy a home. The real reasons are right in front of you.  With prices and interest rates at all time lows now is the time to act.

Gary Miljour- Mortgage Lending for Tempe Arizona

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Sunstreet Mortgage, LLC NMLS#145171

Gary Miljour Licensed Loan Originator NMLS#207208

MLS# 4398934 Beds/Baths: 3 / 2 SF: 1,589 / County Assessor Year Built: 1974 Pool: Private EF: 32FRDXP2G Approx Lot SqFt: 9,317 / County Assessor Apx Lot Size Range: 7,501 – 10,000 Level: Single Level Dwelling Type: Single Family – Detached Subdivision: Brownmore Estates

Tax Municipality: Mesa

Ele Sch Dist: 004 – Mesa Unified District Elementary School: Field
Jr. High School: Poston
High School Dist #: 004 – Mesa Unified District High School: Mountain View

Remarks: Great Mesa family home. Walking distance to Top rated schools (Poston/Mtn View). Home was just painted and is move in ready. 3 large bedrooms, 2 full baths. fireplace in family room. Huge lot with big front and backyards. Backyard has a large pool, garden and grassy area. Also has a private den/bonus room with outside entry. No HOA

Not a Short Sale or Bank Owned property. We can close in time for the buyer to receive the tax credit! One bedroom and full bath located downstairs. Master bedroom is upstairs and features walk in closets and a balcony. Large master bath with dual vanities and a seperate shower and jacuzzi tub. Bonus room/loft! Light and bright eat in kitchen with a pantry and center island. Neutral decor throughout. Property is located next a park! 3 car garage with a seperate garage door to backyard – great for toys!

Address: 708 N 110th Street Mesa Az 85207

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*BANK OWNED*Beautiful custom property in East Mesa. Tuscan style home with gorgeous stone accents. 20′ tall ceilings and elegant rod iron stairway. The formal living area features a piano room for entertaining. Every bedrooms features a walk in closet and private bath. Two bedrooms are located downstairs. Three bedrooms upstairs. The kitchen has granite and custom cabinetry with plenty of storage space. All this plus a 4 car garage.

Look at this home! 7337sft home in the foothills of North East Mesa Arizona. New construction, This home features 4 bedroom suites, study, Theatre, and some amazing views. sits on just over an acres of land too.