Medford, MA

Home Value Update for Medford MA Through Ocober 2009

According to Trulia.com, the sale prices of single family homes have increased 0.1% in the past year through the end of October 2009. The current mean sale price of homes for sale on the market in Medford, MA, is $324,888. Below is a chart of the trend of listing prices of homes for sale in Medford, MA, in the past year through October 2009:

Medford Recently Sold Homes

The $8000 first-time homebuyer's tax credit has been extended, and now expires on April 30, 2010. So, there's no better time than now to buy a home in Medford, MA, or surrounding area. If you're looking for a home or condo to purchase in Medford, MA, or in the surrounding area, then try this home search.

You can still buy a home with no money down with the USDA Rural Development Home Loan program. With the FHA Mortgage program, you can purchase a home with as little as 3.5% down. When you're ready to buy a home, find out how much home or condo you can afford to purchase in Medford, MA, or in the surrounding area.

The Mortgage Interest Rate Lock Advisory for Medford MA for November 9, 2009

Here are some of the events affecting mortgage interest rates today in Medford, MA.

What the Mortgage Backed Securities Market is Doing Today:

The price of the FNMA 30-Year 4.5% MBS coupon opened at 101.16 this morning - down 4/32 from Friday's close.

The chart below shows today's price trend of the FNMA 30-Year 4.5% coupon:

The FNMA 30-Year 4.5% MBS coupon is currently trading at 101.34 - up 2/32 from its opening. Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and mortgage interest rates come down with it. I expect that mortgage interest rates will be the same in price this morning as compared to Friday's close.

The chart below shows the price trend of the FNMA 30-Year 4.5% coupon over the past 30 days:

Recent Activity in Mortgage Backed Securities:

Economic Reports, News, and Events Affecting Mortgage Interest Rates Today:

• There are no economic reports scheduled for release today.

In other news, the Treasury will auctioning $40 billion in 3-Year Notes today. If the Treasury auctions are met with a strong demand from investors, we should see higher prices for mortgage backed securities and lower mortgage interest rates. However, if we see a lackluster demand, we should see lower prices for mortgage backed securities and higher mortgage interest rates.

What's Happening With Mortgage Interest Rates Today:

Low to Moderate Volatility. Overall, because of the lack of economic reports this week, the Treasury auctions and the stock markets will most likely be the dominant influence on the trading of mortgage backed securities. If the stock markets rally this week, we will probably see funds shift from mortgage backed securities and into stocks. That will drive prices of mortgage backed securities downward and lead to rising mortgage interest rates. If, on the other hand, stocks fall from current levels, that would make mortgage backed securities more attractive to investors and lead to lower mortgage interest rates.

My Mortgage Interest Rate Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

• Lock if my closing was taking place within the next 7 days
• Float if my closing was taking place between 8 and 30 days
• Float if my closing was taking place between 31 and 45 days
• Float if my closing was taking place between 46 and 60 days

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of any or all other borrowers.

Get the best available mortgage interest rates for your situation in Medford, MA!

Last week the Senate voted to extend the first time buyer tax credit. Today the bill passed Congress. It is expected that President Obama will sign the bill in the next day or so.

The new bill will extend the $8,000 1st time buyer tax credit to include all properties under agreement by April 30th as long as they close by July 1st 2010. The income limits have been expanded as well. Single people can now make up to $125,000 while married couples can earn up to $225,000 and still take advantage of the tax credit.

This time there is also a provision for move up buyers. If you have been in your house for at least 5 years, you can sell your present primary residence, purchase a new house and receive a tax credit of $6,500.

Here’s a comparison chart showing the difference between the current 1st Time Buyer Tax Credit rules and the new regulation.

Part of the $8,000 tax credit that's often overlooked

Image via Wikipedia

There has been one glaring part of the $8,000.00 first time homebuyer tax credit that is often overlooked.

YOU MAY NOT BE GETTING THE FULL $8,000!!

The tax credit is for 10% of the purchase price or up to $8,000.00 whichever is LESSER. From the IRS Website on the tax credit.

http://www.irs.gov/newsroom/article/0,,id=206291,00.html
Q. How much is the credit?

A. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more ($80,000 if purchased after Dec. 31, 2008, and before Dec. 1, 2009).

There's also a great section on who is NOT eligible:

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a new home:

Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.


You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.


You do not use the home as your principal residence.


You sell your home before the end of the year.


You are a nonresident alien.


You are, or were, eligible to claim theDistrict of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)


Your home financing comes from tax-exempt mortgagerevenue bonds. (This does not apply for a home purchased in 2009.)


You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Just some interesting questions and answers that fully describe the program. Here inMedford, Massachusetts there are few properties in the $700,000+ range to max out the credit but withSomerville, Cambridge, Winchester, Arlington andBoston close by there are plenty of options for the well financed first time buyer.

Bring your ghosts, goblins and ghouls to Medford on Friday October 30th from 3-4:30. Each year the Medford Chamber of Commerce along with local business in Medford Square and along Salem Street open their doors and pass out candy.

This annual event is for kids 9 and younger. Parents, feel free to dress up as well - it's all part of the fun! Stop by ERA Andrew Realty right in Medford Square for candy and to view one of the largest Department 56 Christmas Villages.