Missing the tax credit deadline could save you money
MISS THE TAX-CREDIT DEADLINE?
If you were one of the thousands of Americans that purchased a home ahead of the tax-credit deadline this year, congratulations. Welcome to home ownership, take care of your investment and enjoy.
If you missed the real estate tax-credit deadline and you’re feeling bad about it, maybe you shouldn’t be so hard on yourself. The numbers indicate that your might not be so bad off.
TAKE A LOOK AT THE NUMBERS
Realtor Magazine is sharing some numbers that might have you breathing a sigh of relief if you didn’t pick up a property before the deadline expired.
Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.
TAKING A CLOSER LOOK
At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.
The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.
That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit.
Source: Informa Research Services (05/26/2010)
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