Will tax credit be extending and expanded?

I ran into two real estate professionals this morning (from Team Tezak) , and inevitably our conversation moved to the state of the real estate industry in northwest indiana. The comment though that jumped out at me was "I just heard the tax credit is going to be extended."

Well, not having heard that bit of news I posted on twitter asking for updates and links.

The three most sent links were: Senate Likely to extend tax credits for homebuyers, This just in Senators extend and Senators agree to extend homebuyer tax credits.

No, it's not law yet, still to be voted by the Senate and then the House and must be signed into law by the President. Looks like an extension until the end of June 2010 for closings, End of April for purchase agreements of the $8,000 and a new credit of $6,500 for people who buy a home and have owned their home for more than 5 years.

In my estimation, all good thoughts, if this credit costs the country $10 Billion it will probably create more jobs than the entire ill-fated and ill-advised stimulus bill and continue to build on the real estate value momentum we're already seeing in NW Indiana.

Indiana one of most affordable - closing costs

From Marketwatch

There's "tremendous variance throughout the U.S.," said Tony Farwell, chief executive of ClosingCorp, the parent company of Closing.com, a Web site that helps people estimate the money they'll need to close a home purchase and allows them to comparison-shop for providers.

Buyers in Maryland, Delaware and Vermont typically pay the highest closing costs in the country, while Wisconsin, Colorado, New Mexico and Indiana buyers pay the lowest, according to the report. In general, buyers spend between 2% and 7% of the cost of their home on closing costs, Farwell said.

The calculations include taxes and fees that are set by state and local laws, and other costs that consumers have little direct control over -- including appraisals and credit reports. They also include costs of items such as escrow and title insurance, over which consumers typically have more flexibility to search for deals.

Good news again for Indiana, our costs are lower than in many over-regulated parts of the country. In some areas title insurance rates are forced higher by government manipulation of the markets. The single biggest reason that Indiana is lower than most is that our property taxes in Indiana remain some of the lowest in the nation due to leadership by our Governor.

Call us today at 219-762-7200, let's take a look at making those costs even lower by pricing your mortgage at a rate that eliminates all but the actual third party fees.

Warning - watch out for lenders who promise "no closing costs" which really just means you're paying a higher interest rate so they can pay your closing costs for you.

First Financial Trust Mortgage

POA dues not getting paid in Tower Meadows

I read with interest the article today about Tower Meadows subdivision in Valparaiso, Indiana. Similar to many developments in Northwest Indiana, about half the project is completed, and both developers and banks are changing hands.

In this case the original development team appears to have split, with one remaining developer trying to finish the community. Porter County is playing hardball with requirements for asphalt and drainage, when frankly the residents would probably much prefer mowed grass and a finished community.

One interesting side note, was the comment by the developer that only 4 residents have paid their POA dues, and yet there are 80 more homeowners who are not only not paying but are complaining about the community not getting completed. Been there done that, and am still questioning why the mortgage companies aren't paying the POA dues like insurance and tax payments?

There is definitely a recovering market, especially for these entry level homes for first time buyers .. I hope the developer is able to work with the residents to move ahead, and hope the County doesn't stand in the way yet again. I for one would love to build some homes in Tower Meadows.

Stock market tumble silver lining today

With stocks taking a 200 point today there was a silver lining, mortgage rates are continuing to improve:

From Marketwatch - Average rates on 30-year fixed-rate mortgages fell below 5% this week -- the first time since the end of May, according to Freddie Mac's weekly survey of conforming mortgage rates, released on Thursday.

The 30-year fixed-rate mortgage averaged 4.94% for the week ending Oct. 1, down from 5.04% last week and 6.10% a year ago. The mortgage hasn't been below 5% since the week ending May 28, when it averaged 4.91%.

Call First Financial Trust Mortgage today - rates may vary by credit and of course the APR is always a little higher than the rates quoted online since it includes the real closing costs required to get that loan completed. 219-762-7200