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Mortgage broker’s corner: Jim Marcenkowski

Sunday, December 6th, 2009

Homebuyer Tax Credit Extended and Expanded!

Last month, a new Homebuyers Tax Credit bill was signed into law. The bill extends the tax credit for first-time homebuyers (FTHBs), as well as opens it up to current homeowners who are looking to buy. And even if you aren’t looking to purchase – pass on this article to anyone you think might be in the market to do so. This is information that might benefit them greatly, and I’ll be happy to be of service to them.

Here is a brief overview of the Homebuyers Tax Credit – and its benefits – based on the new bill.

Tax Credit for First-Time Homebuyers

FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners

The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.

What’s So Great About a “Tax Credit”?

The benefit of a tax credit is that it’s a dollar-for-dollar benefit, rather than a “tax deduction”, or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

Remember, the new tax credit program includes a number of details and qualifications. Call or email today if you have questions or would like to see if you can benefit from the tax credit…and email this article along to anyone else you feel it might benefit as well!

 

Jim Marcinkowski

Genesis Home Mortgage Corp

239-936-4232 Direct

239-985-4486 Fax

239-826-6400 Cell

 

Apply online at www.jimnfi.com.

 

Confidentiality Notice: The documents in this transmission contain confidential information belonging to the sender, which is legally privileged. The information is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or the taking of any action in relation to the contents, is strictly prohibited. If you have received this facsimile and/or email in error, please notify the sender immediately and destroy the document(s

 

Mortgage broker’s corner: Jim Marcenkowski

Sunday, December 6th, 2009

“Don’t believe the hype!” The words from Public Enemy’s hit song title rang true once again last week when the Commerce Department reported the Gross Domestic Product (GDP) for the 3rd Quarter. As you can see from the chart below, GDP rose by 3.5% for the first gain in a year and the strongest reading in two years.

While most media outlets were giddy about the news and started the hype that the recession is behind us, it’s important to remember that there’s more to the economic data than just the headlines.

The temporary “Cash for Clunkers” program has now expired, but was a big part of last quarter’s GDP gain. If we remove it from the total, the reading would have been a more modest 1.9%. But there is even more to the rise in the latest GDP number that is just temporary…

Also bolstering the economy has been the $8,000 first-time homebuyer tax credit – which is set to expire at the end of this month. Many home buyers have been taking advantage of this program – and wisely so.

New Home Sales were reported last week, showing a 7.5-month supply of inventory. While that number is slightly worse than last month’s 7.3 reading, it’s still a big improvement from where we were in January. Back in January, inventory levels reached a high of 12.4-month supply! The improvement in housing inventories has been due in large part to the $8,000 First Time Homebuyer Tax Credit, which is set to expire on November 30.

There is a real possibility of an extension of this program through a proposed Bill, but it is not yet a certainty. The extension Bill still must be reconciled between the House and Senate, and then voted on for final approval. Under the current extension proposal, sales with signed purchase agreements by April 30th that close before June 30th, 2010 would qualify for the credit.

Another positive element would be the possible addition of $6,500 tax credit for other primary home purchasers, meaning the tax credit would no longer be limited only to first-time homebuyers. There is also a possibility that qualifying income limits could increase from $75,000 to $125,000 for singles, and from $150,000 to $250,000 for joint tax filers.

I will be keeping an eye on this for you, so stay tuned.

 

 

Jim Marcinkowski

Genesis Home Mortgage Corp

239-936-4232 Direct

239-985-4486 Fax

239-826-6400 Cell

Confidentiality Notice: The documents in this transmission contain confidential information belonging to the sender, which is legally privileged. The information is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or the taking of any action in relation to the contents, is strictly prohibited. If you have received this facsimile and/or email in error, please notify the sender immediately and destroy the document(s

 

 

 

 

The Mortgage Broker’s Corner:ByJim Marcinkowski

Sunday, May 31st, 2009

“I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW.” Og Mandino. The markets
took those words to heart last week, with plenty of timely action ranging
from telling economic reports to interesting announcements from the
government, related to homebuyers.

On the economic news front, the headlines were mixed. On the disappointing
side was a worse than expected Retail Sales Report, which showed that
consumers are continuing to tighten their purse strings. Not entirely
surprising, but it did mark the eighth decline in the past ten months for
Retail Sales. Initial Unemployment Claims were also reported worse than
expected – which some said were due to massive Chrysler layoffs – but still
was disappointing after there had been some recent signs of improvement in
the labor markets.

However, there was positive economic news as well, including improved
readings from the manufacturing sector, as the New York Empire State
Manufacturing Index improved for the third month straight. Consumer
Sentiment was also better than the previous reading and the best since
September of last year. So although the consumer isn’t out spending money
with abandon just yet, this report shows that most folks are indeed starting
to feel better about the economic outlook, likely due in part to the values
of their investment accounts improving as Stock values move higher.

Remember, inflation is the archenemy of Bonds and home loan rates, so I will
be keeping a close eye on this in the coming months.

And as if that all weren’t enough, the government got in on the action, with
the Department of Housing and Urban Development’s Federal Housing
Administration making a very interesting announcement that ultimately
appeared to be slightly premature. They announced a new plan to allow
first-time homebuyers to use the Federal tax credit of up to $8,000 for a
down payment at closing, rather than making buyers wait to receive the
benefit after the fact at tax time. However, no details or logistics of how
this will actually work were released, causing them to actually pull some of
the industry announcements as they regroup to provide more details. This
could be great news for first-time homebuyers, who are slated to account for
53% of home purchases in 2009.

 

Jim Marcinkowski

Mortgage Consultant

Neighborhood Funding, Inc.

8695 College Pkwy.

Suite 2440

Fort Myers, FL 33919

Your Direct Lender!

239-936-4232 Office

239-826-6400 Cell

239-985-4486 Fax

Apply online @

www.JimNFI.com

 

Licensed in: Florida, California, Georgia, Tennessee, South Carolina,
Arkansas, Alabama, Oklahoma, Texas, Oregon, Conneticut, Washington and soon
in Indiana.

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Confidentiality Notice: The documents in this transmission contain
confidential information belonging to the sender, which is legally
privileged. The information is intended only for the use of the individual
or entity named above. If you are not the intended recipient, you are hereby
notified that any disclosure, copying, distribution, or the taking of any
action in relation to the contents, is strictly prohibited. If you have
received this facsimile and/or email in error, please notify the sender
immediately and destroy the document(s).