The Tax Credit is Ending!

There’s not much time left if you plan to take advantage of the tax credit to purchase a first home or move up from your existing home.

Right now is an opportune time to use this credit with deflated home values and low interest rates.

Beth Braverman of Money Magazine wrote an article on 03/02/10 called, “Nab a Real Estate Deal, While You Still Can.”

The gist of the article? Potential home buyers who delay have a lot to lose.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

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