Dave Woodson

First Time Indiana Home Buyers, As part of the American Recovery and Reinvestment Act of 2009, the IRS has officially released Form 5405 — better known as the…First-Time Homebuyer Credit Form.

True to tax code standards, the 10-field form is accompanied by 3 pages of instructions, but don’t worry it is not that bad. However, I am not a tax professional, nor do I play one on TV. If you would like a referral for one in your area please let me know.

The IRS form 5405 is a helpful, go-to resource for home buyers with questions about the tax credit for Indiana Home Buyers

For example, the form distinguishes tax consequences for homes bought in 2008 versus 2009, and clearly defines the term “first-time home buyer”.

In addition, Form 5405 highlights the math behind the tax credit. In general, the First-Time Homebuyer Credit is equal to the lesser of:

* $8,000 for homes bought in 2009
* 10 percent of the home’s purchase price

Married couples filing separately are entitled to half of the expected credit, and homes sold within 3 years are subject to a credit repayment in the year the home ceases to be the “main home”.

Form 5405 is a comprehensive reference. However, be sure to check with your accountant or other tax professional for specific questions about your personal returns and how the First-Time Homebuyer Credit may impact your finances. There is no substitute for professional, paid advice.

For more information or to be approved for your First Indiana Home you can apply online or you can download my My Mortgage Planning Questionnaire. If you would like a phone consultation just give me a call at (219)872-8000.

Dave

As feared, last week mortgage markets slid last week, and it took interest rates with them.

There is still good news, Indiana Home Buyers, Rates are still historically low.

With, a steady drip of bad economic news and with concerns that the banking system out-muscled Fed Chairman Ben Bernanke’s congressional testimony in which he said the recession would likely end later this year.

So, it is litte wonder that mortgage rates rose 9 times in the last 12 trading days.

This week, I am a little unsure what direction mortgage rates will go, but I am sure it won’t be from a lack of action.

The week started with the release of the Personal Spending report, this is a closely-monitored report that will likely make a broad market impact. Some, Economists expect that there was a spending increase in February, providing some key support for economy.

However, if the Economists are wrong and spending fell. The report will cast doubt on the speed at which the economic recovery will occur. Consumer spending makes up two-thirds of the economy, and no spending equals no recovery. So, Go BUY something will you. I wear an XL.

Then, on Wednesday, the White House is expected to release the details of the Homeowner Affordability and Stability Plan. So, markets are playing a “wait and see” on the impact of the news. If key analysts and traders see the plan as effective, watch for stock markets to improve and bond market to weaken.

This would cause mortgage rates to rise.

Last, but no least, on Friday, we will get the February’s official jobs number, and job loss is expected to be over 600,000 for the month and unemployment may reach 8%.

However, on many levels, if the jobs data does meet expectations, it would be okay with mortgage rates.

At this point, I recommend that you float your mortgage rate, cautiously. Wall Street is nervous and is hyper-sensitive to Beltway(Washington DC) influence. Markets can and will change in an instant and when they do it is usually a change for the worse.

This week, I have a game plan, and it will be easier to take advantage of daily mortgage rate movement.

If you have any questions or concerns please give me a call at (219)872-8000. or email me, Dave@madmortgagemachine.com

Dave

As a part of the Stimulus Package,some counties in our area have increased, but the Indiana FHA loan limits for LaPorte, Starke, St. Joseph and Elkhart Counties will remain at the 2008 levels.

One-Unit - $271,050

Two-Unit - $347,000

Three- Unit - $419,425

Four Unit - $521,250

There really never has been a better time than now to buy, build or refi. If you or anyone you know are looking for a true mortgage professional to review the opportunities that are out there please give me a call at (219)872-8000. Or you can apply online at the Mad Mortgage Machine blog, the Indiana FHA Expert. You can download my 14 page Mortgage Questionnaire, that will allow myself and my team better assist you with your financial goals.

Dave Woodson

The Mad Mortgage Machine

As a part of the Simulus Package, the loan limits for Porter and Lake Counties have increased back to the 2008 levels.

One-Unit - $410,000

Two-Unit - $542,850

Three- Unit - $634,450

Four Unit - $$788, 450

There really never has been a better time than now to buy, build or refi. If you or anyone you know are looking for a true mortgage professional to review the opportunities that are out there please give me a call at (219)872-8000. Or you can apply online at the Mad Mortgage Machine blog, the Indiana FHA Expert. You can download my 14 page Mortgage Questionnaire, that will allow myself and my team better assist you with your financial goals.

Dave Woodson

The Mad Mortgage Machine

If you are in Indiana and have any equity in your home it is the perfect time to refi. Rates are still historically low, and soon there will be some changes from Fannie and Freddie that will make refi’in a tad harder. I have a great example of why it is more than perfect time to refit.

I just closed a home refi with a husband and wife, they were fantastic and ecstatic. They loved me as well. I was able to take them from a 7.5% FHA rate to 5.5 conventional loan. What makes me angry is that when they did the original home loan the rates were no where near 7.5 more along the line of 6.5%, but when you use a local bank you do not always get the best service or rates. BUT, this is not about that, at this point.

I was able to save them over $400/month. Yeah, you read that right, $400 a month, and here is the kicker he may be getting laid off here soon. So, this could not have happened at a better time. They received $40,000 back at closing and with just that they have over 2 years of reserves of house payments, but with their monthly outlay they have 11 months in reserves, but they know if he was laid off, they would scale way back on their monthly expenses.

The break down of loan so you can see his savings and why it was a prefect time to do this loan.

Loan Amount @ $232,000 @7.5% = 1622.81 (principal and interest)
Taxes @ 120/month 120
Insurance @ 75/month 75
Mtg Ins @ 105/month 105
TOTAL = $1922.18

My solution @ 5.5%

Loan Amount @ $232,000 @ 5.5% = 1317.27
Taxes @ 120
Insurance @ 75
NO MI @ A HUGE SAVINGS PER MONTH
TOTAL = $1512.27

A TOTAL MONTHLY SAVINGS: $409.91

I know most of your situations will be veru different, but how much would it help you to save $300, $200, $100 or even $50 a month right now. Now, is the best time to do it if you are facing a lay-off or even a slow down at work. There is not much that can be done once you are laid off it really throws on the brakes. I really cannot express enough that now is the time to refi if you are facing an uncertain employment future if you are holding equity in your home it does no one any good if it is locked away. I know that local banks are more than agressive in foreclosure proceedings you have any substantial equity in your home.

You can download my Mortgage Planning Questionnaire , it is an easy step by step Home Loan application that will help me and my team better understand your needs. You simply print it out and email or fax it back to me. It is 100% safe and secure.

Dave Woodson