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Agent of Change

Thoughts on Arlington, Alexandria, Falls Church & DC Real Estate

By John Mentis | Agent in Arlington, VA

Concerned about missing the first-time homebuyer tax credit?

Let’s talk about the “missed opportunity” on the tax incentives. Let’s say first-time home buyer couple is looking at taking a 30-year loan on a $340,000 home, which was the average Long & Foster sale price in July. If they had purchased in early April, in time for the $8,000 credit, the interest rate probably would have been around 5.25 percent.

 

If that same couple bought today and locked in a rate around 4.5 percent, they would save more than $130 per month on the mortgage payment compared to the early-April purchase.

 

Even if they only live in the house for 10 years, they would save more than $16,000 in interest. These record-low interest rates mean buyers "match" the $8,000 they would have gotten in tax incentives if they live in the house just five years.

 

*Payment information is an example only. For more specific numbers, please consult with a mortgage professional.

 

For more information, take a look at a presentation uploaded to Slideshare.net.

 
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