Mortgage Rates Drop to Match Record Lows

If you missed your chance this past Spring, now is the time to take advantage of record low mortgage interest rates.  They're now a full percentage point below this time last year.

Rates for 30-year mortgages averaged 4.78 percent last week, down from 4.83 percent the previous week and equaling the record low this past April.

While rates are low, credit standards remain tight, so you'll need good credit and a 20% down payment to qualify for the best rates.


 

Housing Tax Credits Extended and Expanded

On November 6, 2009 President Obama signed legislation to extend the First Time Homebuyer Tax Credit program to April 30, 2010. The program is also being expanded, effective December 1st , to provide credits up to $6,500 to existing home owners who are purchasing a new primary residence. Existing home owners are defined as those who have owned their existing residence for 5 out of the previous 8 years. First time home owners (those who haven’t owned a home for at least 3 years) will still be eligible for up to an $8,000 credit. To qualify, buyers have to sign purchase agreements before May 1, 2010 and close escrow by July 1, 2010. Home purchase prices are capped at $800,000 and income limits of $125,000 for individuals and $225,000 for couples.


The program is intended only for the purchase of a primary residence, not vacation or investment properties. If the home is sold again within three years, the tax credit must be returned.

A detailed explanation of the program can be found in Kathleen Pender’s column on SF Gate.