by D. Patrick Lewis on November 6, 2009 · 1 comment
If you haven’t heard by now the Congress has extended and expanded the homebuyer tax credit. Both the House and the Senate passed an Unemployment Insurance Extension bill that includes an amendment that extends and expands the homebuyer tax credit. The bill is expected to be signed into law by President Obama today.
Is anything different about this homebuyer tax credit?
The $8,000 credit for first time homebuyers remains intact but has been expanded to include current homeowners. If you have sold or currently own a primary residence for 5 of the last 8 years, you are eligible for a $6500 tax credit, $3,250 if married and filing separately. There have also been some income limits imposed as well as a deadline to be under contract, not close the transaction, by April 30, 2010. You will also notice a limit on the cost of the purchase at $800,000.
The comparison chart below provided by the National Association of Realtors will help. Click here for a PDF of the chart.
Update: This afternoon President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 into law. The law takes effect December 1, 2009.
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Many people across Arizona are caught between a rock and a hard place. Because property values have declined in the last few years, many people owe more on their mortgage than their home is now worth.
Sometimes, much, much more.
If you owe up to 125% of your home’s value, there may be a program that will allow you to refinance and take advantage of lower rates. What if you owe more than 125% of your home’s value?
It is time to get creative on how to save money each month on your mortgage payment.
Back in April, we went over how your mortgage payment is made up of PITI – or Principal, Interest, Taxes and Insurance. If you are in a situation where you can’t refinance, that means that reducing your Principal and Interest are “out” for now — but what about Taxes and Insurance?
The good news is that you can still save money on your taxes and insurance.
Taxes – Your taxes are set by the government for the community you live in. This number is easily found at the Maricopa County Assessors office and can also be disputed if you think the assessed value of your home is too high.
Insurance – Not only should you shop around for homeowners insurance quotes from companies that you know and trust, but you should also takes steps like combining your car insurance and homeowners insurance into one policy, install one of the best home alarm systems available and make sure you are maximizing every available discount.
Just by shopping around a little, you might be surprised at how much you can save on insurance alone.
Even though you are currently in a situation where you cannot refinance and save money on your principal and interest, don’t let it deter you from trying to save money on your overall mortgage payment each month — which is really your ultimate goal.
Especially in these tough times.
by D. Patrick Lewis on August 6, 2009 · 2 comments
Did you know you can get an Energy Tax Credit for making energy efficient improvements to your primary residence?
As part of the American Recovery and Reinvestment Act of 2009 there are energy tax credits available specifically for homeowners in Sections 1121 and 1122.
Section 1121 states:
The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.
The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.
Section 1122 goes on to include solar water heaters, geothermal heat pumps and wind turbines as well.
What does this mean for you?
This means that if you are one of the many recent first time home buyers or one of the many existing home owners and you need to make some energy efficient improvements to your existing home, now is the time.
For example, if you need to replace your air conditioner, and the new unit qualifies for the tax credit, you can save up to $1500. Need new windows or insulation blown into the attic? You can get up to 30% of those costs back.
There are also many different tax credits and rebates offered by municipalities, utility companies, County and State Governments in your state. Here are some resources that will help you find those credits and rebates:
Click here for a list of incentives in Arizona.
Click here for a list of incentives for your state.
The Dept. of Energy’s page on Consumer Energy Tax Incentives
These energy improvements can greatly reduce your energy bills help the environment and increase the equity in your home. So, take advantage of these incentives before they expire on December 31, 2010.
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