This typically enables you, by paying a lower down payment, to buy a larger house than you would normally qualify for. Although this seems like the dream of a homeowner, after the stipulated two-to-five-month period, the interest rate is experiencing a sharp rise. Such loan borrowers often find themselves unable to refinance their existing loans, and are slowly falling into debt. You may want to check out Leave The Key Homebuyers for more.
It will not end well for you to make verbal agreements concerning loans and mortgages. Make sure that everything that you have verbally discussed with your mortgage broker finds its place in a written agreement. In order to prevent any future surprises, jot down the rate quotes, fees, prepayment penalties, and other key terms. Did you know that homebuyer tax loans have recently been extended for the first time? Now, if you sign a purchase agreement by April 30th 2010, and close on or before June 30th 2010, you can still take advantage of the home buyer’s tax credit. It has also been extended to include a move-up credit and repeat homebuyer’s credit, but that is not even the best part!
What is really great about it is that there are several ways to help with your down payment and/or your closing costs by using the tax credit. That’s right; you don’t have to wait until you buy your first home after that to start taking advantage of the tax credit of the first homebuyer. Please let me explain. The credit is more like a refund from the stimulus than a tax deduction. It’s like the difference between a discount in the store rather than a rebate in the mail. You don’t have to close the front of the house and then wait until you file your taxes in order to get the benefit. In order to help you buy the house, there are ways to actually use that expected refund.