Image by alexkess via Flickr
One of the things that has helped stabilize the housing market and create an increase in mortgage applications has been the first time home buyer tax credit. Indeed, more than 1.2 million homes have been purchased with the help of the tax credit. And this is one of the reasons that homes prices are starting to rise again, and sales have increased. As a result, it is little surprise that there is some discussion about extending the first time home buyer tax credit deadline by six months. Real Estate Pro Articles reports on the move:
Conflicting opinions abound over the possible extension of the tax credit. Initially offered as part of the government’s stimulus plan for the US economy, the potential costs associated with a six month extension of the credit are expected to reach around $15 billion, further straining the budget deficit of the US economy. Understandably, the financial aspect is the main concern over the approval of an extension of the credit following the November 30 deadline.
However, there are concerns that the housing market will slip back into stability without the first time home buyer tax credit. Some are even suggesting that the tax credit be increased to $15,000, and offered to everyone. That way, those who are “trading up” could also take advantage of the tax credit, and it would get things moving at the top of the market as well as the bottom of the housing market, which is heating up.
In the end, though, it will be interesting to see what happens. And it will also be interesting to see, if the measure is approved, whether or not this merges into a permanent tax credit for buying a home, much as we see a tax credit for mortgage interest.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=4fd6a8f6-a778-47c9-916c-05e52f96be47)
Add to:
[...] home buyer tax credit. But will it really be the end? There are debates going on right now about extending the first time home buyer tax credit. There are two main proposals on the table right [...]
Posted by: Debate Over First Time Home Buyer Extension Underway - Mortgage Rate News | October 8th, 2009 12:27 pm |
remember that it is best to pay less than 30% of your net monthly income toward mortgage payments each month. While you may think you can afford more, with the current state of the economy, it is best not to over-extend yourself financially.Thanks a lot blogger for such a nice post about mortgage payments .
Keep blogging
Posted by: Jonathan Paul | October 13th, 2009 11:46 pm |
I believe that a stemulus bill should be for everyone,not just a few .After all everyone has to pay for it so why should a few reap all the cash.
The home first buyer credit and the cash for clunkers was a bad deal for the tax payers.So was the bail out for the banks.Why should the tax payers pay our money to the biggest crooks in our republic? Thats’ right we should not.
We had laws on the books to deal with this type of crisis and that should have been allowed to work.No, to more of this idiotsy,already.
Posted by: suddencall | October 18th, 2009 10:03 pm |
[...] the deadline for the first time home buyer tax credit extension approaches, is on plans that will extend the first time home buyer tax credit — and maybe even expand it to include all buyers, and not just first time home buyers. As [...]
Posted by: LoanShak » Industry Groups Want to See a Home Buyers Credit Extension | October 20th, 2009 11:26 am |
I really hope they do extend it! It helps every small business right now involved in the Real Estate game. We are doing a ton of termite inspections right now, home inspectors and appraisers are busy, foundation engineers, etc! If we are making money we are spending it also so everyone wins. Extend it and raise it to 15K yahooooooooo!!!!!
Posted by: Chris Melaney | October 20th, 2009 4:55 pm |