When you go to SONYMA don't forget to ask for the NYS Mortgage Credit Certificate (MCC). It allows first time home buyers to claim a tax credit equal to 20% of your annual mortgage interest costs.
The $8000 Federal governmentâ€™s tax credit which expires November 30th of this year. Gov. Patterson decided to keep the party going with the MCC, because it gives you a tax break even after the federal credit expires.
The MCC allows first time home buyers to deduct, dollar for dollar, 20% of the amount paid in mortgage interest from your federal tax return. According to the state, in the 1st year of ownership, a new owner with a $150,000 loan at 5.5% interest rate will likely pay $8,200 in interest. The MCC allows you to claim 20% or $1,640 as a direct tax credit. Thatâ€™s $137 per month in savings.
New homebuyers should apply for the MCC when you apply for your mortgage from your lender. SONYMA will administer the program and more details can be found at http://www.nyhomes.org/.
Buyers can still get the $8000 federal tax credit if you close before Nov 30th of this year. MCC applications should be ready by the middle of September 2009. Also buyers who already have commitment letters should be able to apply to their lenders for the MCC before closing. Time is a tickin, so if you havenâ€™t found your dream home yetâ€¦AskRey.
Rey Hollingsworth Falu
Licensed Associate Real Estate Broker
Houlihan Lawrence - Bronxville