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Recently enacted legislation has become a lifeline for many would-be homeowners and those current homeowners who are looking to refinance their mortgages. With millions of homeowners eligible for these amazing opportunities to either buy a new home or to refinance to a rate of 4.5%, this plan is aimed to stimulate the economy, put folks into needed homes, and keep current homeowners in their homes at affordable rates.
There are many tax credits, grants, and various programs available right now through the United States government that will allow current homeowners to remain in their homes regardless of the tough economic problems that the entire country is facing, regardless of their past credit performance. These government programs are designed to assist homeowners and would-be homeowners in the short term, but will have lasting implications for those who choose to seize the opportunity that is being offered.
Buying Your First Home Under Obama Legislation
Borrowers who are looking to buy a home that have never owned their own home before can take advantage of the tax credit that is now available for people in their situation. This tax credit is a refundable credit on your personal income tax return that can be up to 10% of the total purchase price up to $8,500. This will be refunded when you file your taxes as a tax refund.
Those who qualify for the credit and purchase their home before the deadline do not have to wait to receive their credit; these borrowers can file an amended tax return for the current tax year and get their money faster. Many lenders are advancing the credit to borrowers who qualify in order to allow them to use the down payment option now. These homes are being sold at low, low interest rates. You should also look for a lender who offers a fixed rate mortgage, as this provides you with a set interest charge each month, making your payments predictable and affordable.
Refinancing Your Current Mortgage
Another valuable piece of legislation passed by President Obama involves the home affordability program. Under this program, home owners can refinance to a low fixed rate of only 4.5% in most circumstances under the stimulus legislation and the Economic Recovery Act of 2009.
This is a blessing for those homeowners that have seen the values of their property diminish to a point where traditionally they did not qualify for refinancing. Many of these homeowners had been stuck with an adjustable rate mortgage that featured balloon payments that were beyond their financial scope to pay or huge payments that had tripled due to fluctuating market conditions that were beyond their control.
Determining whether you qualify for refinancing is as easy as contacting a qualified lender. You lender can give you an idea of how much your new payment would be, how long you would be required to pay the amount before owning your home outright, and how much you can save over your current mortgage plan. |
